The study aimed to examin the impact of fiscal policy on the economic stability in the Egyptian economy over the period 2006/2007-2021/2022 to identify if the followed policy was pro-cyclical or counter-cyclical, taking into account the impact of financial transparency on the policy followed. To achieve the aim of the research, the study used “economic risks/ economic stability” from Political Risk Servies Group (PRS) as an indicator to express the macroeconomic stability level. Regarding fiscal policy, the study employed more than one indicator as a proxy for fiscal policy over the study period. These indicators are: (total revenues, tax revenues, government expenditure, grants and social benefits). They were utilized as a percentage of GDP. Additionally, the Government Transparency Index from Transparency International and the Budget Transparency Index (Open Budget) from the International Budget Partnership were used to assess the role of fiscal transparency. The study relied on hierarchical multiple regression to build a model with three equations. By employing The Autoregressive Distributed Lag model (ARDL) through the study period, encompassing 60 observations. Finally, the study revealed a favorable influence of the fiscal policy on the macroeconomic stability in both the short and long run. Also government transparency exhibited a positive impact on macroeconomic stability over both time horizons. Furthermore, fiscal transparency played a boosted role in enhancing the relationship between fiscal policy and macroeconomic stability.