We use to examine the panel data set of 55 countries for a period of 1986 to 2014 to investigate a certain level of inflation rate after which economic growth is predicted to be decline, and at what extent intuitional quality matter to control the threshold level. To approximate threshold level of inflation threshold regressive approach has been used and the association between institutional quality and threshold level of inflation ordinary least square has been used. The result of the study indicates that estimates of threshold level are stable with previous empirical studies. However, impact on institutional quality is reliable with theory but insignificant except investment profile. Supervisor:- Dr. Wasim Shahid Malik