Abstract: The purpose of this study is to test impact of dividend policy on stock price volatility in Pakistan. The study had been carried out a stratified sampling containing companies in their respective sectors with respect to market capitalization, listed in KSE. Time series data was selected from year 2001-2014. Descriptive statistics, correlation and regression models were used to perform the data analysis. According to the findings of the regression all results were not significant. This means that dividend policy had no impact on stock price volatility in Pakistan.