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In this paper we specifically investigated the causality between education and economic growth in Haryana(India) during 1991‐2008 as we are emerging knowledge economy. Public Expenditure on Education(PEE) is used as a proxy for education, while Gross State Domestic Product(GSDP) is the proxy for economic growth. The empirical investigation has been carried out by Granger‐Causality Approach. The empirical results confirmed that there is bi‐directional causality between education and economic growth in the State of Haryana. And the direction of causality is from education to economic growth (PEEGSDP) as well as economic growth to education (GSDPPEE). Therefore, study concludes that there exists long run relation ship between education and economic growth.