This study aims at the findings of the impact of cash flow uncertainty upon dividend and investment decisions for the manufacturing firms listed at Pakistan stock exchange (PSX). We examine that the firms which face cash flow uncertainty neither decrease investment nor cut dividends however they give more preference to investment than dividends. The firms maintain their dividend and investment level even if there is a condition of cash flow uncertainty. In case of Pakistani manufacturing firms, external financing (particularly debt financing) is the only way to overwhelm the cash flow uncertainty. With the variation of cash flow uncertainty and investment to dividend sensitivity analysis we get a non-linear relation between dividend and investment for manufacturing firms of Pakistan. Supervisor:- Dr. Abdul Rashid