Small and Medium Size enterprises act as an engine of economic growth through new business creation, employment generation and poverty reduction in any economy. Talent Management (TM) has been popular in academic circles and corporate since the end of twentieth century owing to intense global competition and shortage of capable workers termed as “Talent”. SMEs face intense competition from other SMEs as well as from large enterprises and this state of competition calls for excellent strategies, market winning products and impressive execution of the plans. All of this is not possible without “Talented” workers. The dissertation analyzed the relationship between Talent Management (TM) and Organizational Performance. Major gaps in the area of Talent Management includes emphasis qualitative researches, overemphasis of these studies on Large Enterprises , and lack of studies on quantitative impact of Talent Management (TM) on SMEs in the context of developing economy. The current study is an original work that focuses on SMEs and the relationship between different aspects of Talent Management (TM) and Organizational Performance in SMEs in Karachi, Pakistan. This study is quantitative in nature and survey method has been used for data collection. Population of the study was Small and Medium Sized Enterprises in Karachi. The data was statistically analyzed using regression to establish the relationship between TM factors and Organizational Performance. The study concludes that Talent Management (TM) is significantly important for small and medium sized enterprises and contributes to their overall performance. The findings reveal that each component of Talent Management (TM) is important and has significant contribution towards Organizational Performance suggesting that all Talent Management (TM) components need to be employed and emphasized.