The current research aimed to investigate the effect of accounting conservatism on the relationship between information asymmetry and the level of cash holdings, especially in light of the lack of studies that dealt with this effect on the Egyptian environment, by answering the following questions: Does information asymmetry affect the level of cash holdings?, What is the effect of accounting conservatism on the relationship between information asymmetry and the level of cash holdings? In order to test the research hypotheses, accounting conservatism was measured by using the total accruals and non-operating accruals measures, and the information asymmetry was measured through Bid-Ask Spread, and the level of cash holdings was measured by the ratio of cash and cash equivalents to the book value of total assets. Using a sample of companies registered on the Egyptian Stock Exchange consisting of 75 companies belonging to ten non-financial economic sectors over the period from 2015 to 2017, by using the multiple linear regression analysis, the researcher find: 1- There is a positive relationship between information asymmetry and the level of cash holdings, meaning that the higher the level of information asymmetry, the higher the level of the cash holdings. 2- The accounting conservatism has a positive significant effect on the relationship between the information asymmetry and the level of the cash holdings.