Employees are proved to be an Internal and also significant Customer of a business organization. Their human resource is a key for the sustenance and growth of the organization. Therefore keeping the employees in the motivated and excited state is challenging but a major requirement to any organization. Since the employees are real executors of organizational agenda using the supplies, there is a requirement of studying the relationship between morale of employees and supplier. Materials are frequently a major source of quality problems, which indicates the importance of supplier relationship in Total Quality Management. Successful implementation of TQM demands strength full and long term relationship with suppliers because; suppliers are regarded as almost its integral part of the company. One of the crucial determent in successful implementation of TQM is Supplier Partnership. MSMEs play critical role in the economic development of a country. Quality management of these MSMEs is would be critical for their stability. The aim of the paper is to examine the level of Supplier Partnership against employee morale of MSMEs of Ballari, Karnataka. The universe comprised executive and non executive workforce of the firm. Sampling was carried out using convenient sampling technique with sample size of 50 in line with the Cochran formula. Data was collected using observation and informal interview methods. Descriptive statistics and Chi-square test was used to analyse the data. The research envisaged that all the factors of supplier partnership are associated with employee morale of the MSMEs. The study revealed that, participation in supplier’s quality management process, Pre-Procurement quality check and Collaboration at the MSMEs has significant influence on employee morale.