After the collapse of Bretton-Woodssystem in 1973, many countries adopted the floating exchange rate regime. Thissituation led to fluctation and uncertainties in the exchange rates. There arenumber of studies that analyze the effect of Exchange rate volatility on tradeflows but previous studies cannot obtain results about sectoral base due to thelack of disaggregated data sets. This study investigates the effects ofexchange rate volatility on trade flows in Turkey. For this purpose usingannual data covers the period 2002-2013. Exports to 15 European countries andimports from 15 European countries are analyzed by panel methodology. According to the test results, export sectorsare negatively affected; import sectors are both positively and negativelyaffected from exchange rate volatility.