This term paper focus to discuss on Impact of Monetary Policy in Capital Market. Monetary policy is the process by which the monetary organization of the country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official objectives usually include relatively stable prices and low redundancy. Monetary theory provides insight into the way to craft optimal monetary policy. Here also briefly explain on Capital Market, Recent Stock Market Crash and the role of Monetary Policy.