The purpose of the study was to examine the relationship between investors’ stock market awareness and to its relationship with stock market efficiency in Pakistan. Stock market efficiency was taken as a dependent variable measured in terms of market capitalization, market liquidity and market turnover. The variables which helped to measure awareness were social learning and financial literacy. Five point Likert scale was used for the measurement of the responses obtained from the investors. A sample of investors was selected from district Multan and district Rahim Yar Khan. The results revealed that investors’ level of awareness is significantly associated with stock market efficiency in Southern Punjab – Pakistan.