This study investigates the impact of trade on low, middle and upper income groups within developing countries for the time period of 2000-2015. Panel data techniques fixed and random provided insignificant results, due to the problem of endogeniety I employed generalized method of moment which indicated that trade openness has positive and highly significant impact on income groups. However, the magnitude of impact is lowest for upper income group, and comparatively larger for lower income group. From this it can implied that the lowest income group gets most benefit from openness of trade due to the provision of cheap goods, increased employment opportunities as compared to the upper and middle income group. The GDP growth and employment are positively and significantly associated with income groups. Human capital inflation and investment revealed negative relation with income groups. Policy makers should focus on making effective trade policies in order to yield increased income and growth in the long run for all income groups in developing nations. Supervisor:- Dr. Usman Qadir