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The aim of this study is to investigate the effect of leverage and free cash flow on the cash holding adjustments. This study is significant as its finding can be of help in the efficient management of cash holding for achievement of optimal cash and in establishment of a good policy for cash management. Therefore, in this study, information about 60 companies in Tehran Stock Exchange during 2003 to 2015 is gathered and analyzed with the Regression Method. The findings show that there is a direct relationship between the leverage and free cash flow with the cash holding adjustments. This relationship is as same as in the companies with the deficit but this relationship does not exist in the companies with the excess cash holding. These findings can be an emphasis on the need of cash management to achieve optimal cash decisions.