Family businesses have long dominated the corporate world. The intricate familial relationships associated with these businesses can give rise to issues such as nepotism. Literature on family businesses shows that nepotistic practices are widely common. The prevalence of nepotistic practices influences the organization’s structure and determines the nature of its decision-making processes. It impacts its internal personnel, non-family employees’ morale as well as the overall culture. This paper is in purpose of exploring nepotistic practices in family businesses and their impact on different areas of the organization.