This study investigates empirically how income inequality influences the impact of institutional quality on economic growth by looking into the composite effect of income inequality and institutional quality on growth. A panel of nine low and lower-middle income countries is used to examine the question. The data spans over 1984-2010. The results suggest that inequality can adversely affect the otherwise positive impact of institutional quality on growth. This also suggests by implication that an egalitarian society improves the impact of institutions on growth. Supervisor:- Dr. M. Idrees Khwaja