Financial inclusion has gained immense attention from researchers and policymakers. Many studies analyzed the relationship between financial inclusion and different macroeconomic variables. This study explores the relationship between financial inclusion and monetary policy effectiveness in developed and developing countries. Financial inclusion is measured by composing an index using three dimensions: access, usage, and barriers. The inflation rate is used as a proxy of monetary policy effectiveness. The study employed a panel structural vector autoregressive technique (SVAR) on data over the period of 2004-2018. The results suggest bidirectional relationship of financial inclusion and monetary policy effectiveness in developing countries however only inflation has an impact on financial inclusion in developing countries. Supervisor:- Dr. Amena Urooj Co supervisor:- Dr. Saud Ahmed khan