The purpose of the study was to examine the effect of globalization on the monetary policies in enhancing small and medium enterprises in Nigeria; the specific objectives include to; examine the effect of globalization on the inflation rates in enhancing SMEs and examine the effect of globalization on the exchange rate in enhancing SMEs. The study had a population of 257 employees drawn from among selected manufacturing firms in Enugu State. The sample size of 117 was drawn using Freud and Williams formula at 5 percent error margin. A survey design was adopted for the study. The instrument used for data collection was the questionnaire. A total of 117 copies of the questionnaire were distributed while 112 were returned. Two hypotheses were tested using regression, and with the aid of the Statistical Package for Social Science (SPSS).The findings indicate that Globalization has negative effect on the inflation rates in enhancing small and Medium Enterprises hence negative in its absence t(95, n = 117) =-1.685, p <0.05, enhancing Small and Medium Enterprises is negative in the absence of globalization t(95, n = 117) = -0.813,, p < 0.05. The study concludes that Globalization affects how governments throughout the world create policies affecting areas such as financial regulation and trade. The study recommended that the Nigerian government, as well as the government of other developing economies, must invest substantially to the growth, development, and sustainability of SMEs through the provision of essential infrastructures, human resources, microfinance, security and adequate policy framework.