The aim of this research is to study the relationship between money supply and inflation in Libya for the period (2000-2023). To achieve this goal, a quantitative analytical approach was adopted using standard methods to estimate the relationship between money supply and inflation. The estimation results indicated that there is a cointegration relationship among the variables at a significance level of 5%. Thus, there is a long-term equilibrium relationship between the variables under study. Short-term imbalances in the model require one year and sixteen weeks to return to equilibrium. Current inflation is positively affected by the current narrow money supply and by inflation from previous periods in the short term. Specifically, when the money supply increases by 1%, inflation rises by 0.17. In the long term, a 1% increase in the money supply results in an inflation increase of 0.0488. An increase in the money supply leads to a diminishing rate of inflation, and there is a one-way relationship from the narrow money supply to the inflation rate. The results of the study align with Friedman’s hypothesis, which posits that inflation is a result of increases in the money supply. Keywords: Money supply, inflation, economic relationship, co-integration, Libya.