The core aim of this research study is to investigate the consequences of psychological contract on organizational commitment. The context of the study is higher educational Institution International Islamic University Islamabad. Data is collected from 90 faculty members of International Islamic University Islamabad through questionnaire by using the convenience sampling approach. The alpha index is using minimum (0.60) to measure the item reliability. Regression analysis indicates that psychological contract is positively and significantly associated with affective commitment (0.55), continuance commitment (0.74), and the normative commitment (0.69). From the findings, it is concluded that psychological contract is very important for organizational commitment. Higher degree of psychological contract has a result of more organizational commitment. This paper recommended that higher educational institutes should focus on developing a positive and healthy psychological contract with employees. Failure to do so may result in unhealthy psychological contract and can produce negative employee related outcomes.