Income inequality and its relationship with economic growth has been the focus of an extensive amount of research in the past decade. Research have attempted to determine whether inequality has a positive or negative effect on growth and theoretical frameworks suggest that there is a possibility for both. This study seeks to analyze the connection between income inequality and its relation to economic growth, with a particular focus on the moderating role of development levels across countries. This study utilizes a panel data approach and categorizes countries into four development groups based on Gross National Income (GNI). The main objective was to assess the effects of income inequality, measured by the Gini coefficient, on economic growth. The analysis further incorporated key indicators to provide a comprehensive perspective on the complex relationship between income disparity and growth. The results suggest that the influence of income inequality on economic growth is context-specific, varying between development levels. The findings highlight that attributing the effect of income inequality on economic growth to a singular factor is challenging, as indicated by prior research. Finally, the research highlights the importance of considering the developmental context when analyzing the complex dynamics of income inequality and its potential implication for economic growth.