This study examines the relationship between external reserves and stock market performance in Nigeria from 2004 to 2014 using stock market capitalization as the dependent variable. The research uses a log-linear regression model with OLS estimation to test the effects of foreign exchange reserves (FER), interest rates (INT) and foreign portfolio investment (FPI) as independent variables. Results show that FPI has a positive significant impact on stock market capitalization, meaning Nigeria is becoming more dependent on foreign capital flows. Interest rates have a negative significant relationship with stock performance, meaning tight monetary policy hurts equity investment. Foreign exchange reserves have no significant impact on the stock market, meaning reserve accumulation alone is not enough to stimulate capital market development without supportive policies. The study concludes that while reserves ensure macroeconomic stability, interest rate management and FPI attraction are more important for stock market growth. Policy recommendations are enhanced coordination between monetary and fiscal policies, interest rate stabilization and strategic reserve deployment to boost investor confidence and market resilience. This research adds to the limited Nigeria specific literature on macro-financial linkages and provides a framework for future studies in emerging markets.