Vocabulary is the kernel for all language skills; it helps learners to interact with the speakers of that language. This study aims to scrutinize the effect of a short story on developing students' vocabulary. It is an out-product of fieldwork to figure out the useful points for teaching and learning vocabulary through short stories. The test was used to identify the effect of utilising the short story on vocabulary retention. The test was distributed to forty (40) students of Jalna College. The data of the study were collected from students after teaching them the short story for one month--three hours per week. The data was analyzed by using the SPSS software package. The overall results from the test indicated that the participants were very much impressed with the short story. The students successfully recalled most of the words used in the short story context. Some recommendations were suggested for the teachers to include short stories in their lessons and curriculum.