Financial development can play an important role in reducing income inequality and eliminating poverty. Financial inclusion is one of critical dimensions of financial development. We test the relationship between the income distribution and the financial inclusion. The level of financial inclusion is assessed by the IFI, while income distribution is measured by Gini coefficient. The panel VAR model shows that the level of financial inclusion has a significant impact on income distribution, and raising the level of financial inclusion may effectively reduce the inequality in income distribution.