The purpose of the study is to investigate the impact of ownership structure on firm dividend payout ratio of sugar and cement sector of Pakistan. The data is collected from the financial statement of sugar and cement companies listed on PSE. There are 35 sugar and 24 cement companies that are selected as a sample. Furthermore the data was collected ranging from 2006-2011. The finding of the study shows that institutional ownership has significant impact on the dividend pay out ratio but managerial and family ownership have insignificant impact on dividend payout ratio of sugar sector. Institutional and managerial ownership have significant on dividend payout ratio but family ownership has insignificant on dividend payout ratio of cement sector of Pakistan. Size of firm also significant impact on dividend payout ratio of sugar and cement companies. Furthermore leverage has not significant effect on dividend payout ratio of sugar and cement sector of Pakistan.