Inflation targeting (IT) has emerged in recent years as a leading framework for conducting monetary policy in order to attain price stability. Like many other developing countries, Egypt is now aspiring to introduce inflation targeting as a framework for its monetary policy. This research reviewed the evolution of monetary policy in Egypt during the last two decades, starting in early 1990s with the lunch of series of agreements’ with IMF and world bank known as ERSAP, till 2010, the year prior to the rise of what’s called the Arab spring. Additionally, we evaluated the IT experience in Egypt in terms of achieved goals and conducted institutional and monetary reforms. This research also drew some conclusions and formulated some policy recommendations for crucial monetary adjustments that Egypt should consider for the purpose of conducting IT.