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Intellectual capital is a prime strategic asset for organizations in a knowledge based economy. In a knowledge based economy it is indispensible for organizations to indentify, maximize and utilize their intellectual capital to stay in a competitive environment. The main crux of this paper is to examine the relationship of intellectual capital with organizational performance of electrical and electronics SMEs operating in manufacturing sector in Pakistan. This research is conducted in two cities of “Golden Tri Angle” namely Gujrat and Gujranwala in Pakistan. Convenience sampling technique was used for data collection. Structured questionnaires were administrated as a research instrument to collect data from respondents. Pearson Correlation and Multiple Regression were used to test the relationship between components of intellectual capital and organizational performance. This is the first study that focused on small and medium enterprises in Pakistan to examine the relationship of intellectual capital with organizational performance.