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The aim of this paper is to study the relation ship between pollution and Externality in order to find the optimal level of Pollution by using different measure such as net price benefit function. This paper is dealing with various items, such as the nature of pollution as an externality, the optimal level of pollution, the need for pollution Control, methods of pollution Control and level of Economic Activity. There are many findings in this paper: First, the optimal level of pollution occurs when marginal net private Benefit equals marginal external cost, second, there are many methods of pollution control, standard setting is likely to be the least efficient. Taxes and subsidies are possible and may be successful.