This study examined the effect of environmental dynamism on liquidity position of food processing firms in Nigeria. The study specifically analysed the effect of environmental dynamism on current ratio, quick ratio and cash Ratio of the selected food processing firms. Secondary data between 2016 and 2020 sourced from annual financial reports of the selected firms as published on the Nigeria Stock Exchange database. This study utilised Pearson correlation analysis and OLS linear regression analysis to analyse the data collected in order to test all hypotheses. The findings revealed that environmental dynamism (ED) positively affects all dependent variables; There is a positive correlation between ED and current ratio (r = .837), ED and quick (r =.955) and ED and and cash ratio (r=.873). The results of the OLS regression analysis revealed that ED exert an insignificant positive effect on current ratio with coefficient of estimate of 13.4384 (P=0.076 >.05). ED exert a positive significant effect on quick ratio with coefficient of estimate of 12.6512 (P=0.0114<.05) while ED exert a positive but statistically insignificant effect on cash ratio with a coefficient of estimate of 6.8415 (P=0.053 >.05). This study concluded that environmental dynamism positivelyaffects liquidity position of food processing firms in Nigeria. Also, significance of the effect of environmental dynamism reflected differently in the three liquidity ratios examined. Thus, the selected food processing firms in Nigeria should complete their cash-to-cash cycle in the shortest possible time in order to be positively prepared for uncertainty.