Use of computers, Internet and Information Technology tools have changed the concept of collection development and the services of the libraries. Current study attempts to know the impact of E-resources on collection development in special libraries of Karnataka. The exhaustive literature review reveals that no study has been carried out to examine the impact of E-resources on collection development. Therefore, we need to know how and to what extent E-resources have made an impact on collection development in these libraries. This study fills the gap particularly with respect to special libraries in Karnataka. Questionnaire method was used to collect required data from the librarians and users of the libraries and findings on impact of E-resources on collection development of print resources and their usage are presented. Overall the study shows that E-resources have made very significant impact on collection development and policies of special libraries. Further, this study willuseful to the management and librarians of special libraries to take decisions and to build most effective, research-oriented library collections to fulfill their library and institutions objectives.