For a long time, cash has been the focus of users of financial statements, in terms of its objectivity, as an indicator of the continuity of activity and the company's ability to carry out operations without facing financial problems, as well as as a tool for exploiting opportunities for growth and profitable investment. Creating a balance between available cash and cash needs is one of the most important factors for the economic health of business units and their continued activity. The purpose of this research is to study the effect of agency costs on the relationship between economic uncertainty and cash holding level. The statistical research population of companies admitted to Tehran Stock Exchange and the studied sample includes 152 admitted companies during the years 2017 to 2018. The research method is descriptive and in terms of the relationship between the variables, it is a combination of causality-correlation, and it is practical in terms of the goal. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results obtained from data analysis showed that agency costs have a positive and significant effect on the relationship between economic uncertainty and the level of cash retention.