The aim of this paper is to assess the impact of financial leverage on cashholding structure represented by the proportion of cash equivalents in totalcash and cash equivalents of non-financial companies listed in Vietnam. Weselected a sample of 300 firms from the years 2015 to 2022, and analyzedthe secondary data obtained from the audited financial statements of thesecompanies. Through robust GLS estimation, the findings show that financialleverage has a nonlinear effect on the cash holding structure, characterizedby an inverted U-shaped relationship. Specifically, financial leverage positively impacts the cash holding structure if they are maintained at low levels,however this relationship turns negative at higher levels of financial leverage. These findings suggest that firms should manage their operations differently based on their levels of financial leverage. Firms with low leverageare encouraged to maintain lower cash reserves and invest in marketablesecurities to optimize liquidity and profitability. Additionally, they couldconsider issuing debt to enhance investment and operational capabilities,thereby maximizing corporate value. Conversely, firms with high leverageare advised to hold more cash and demand deposits to mitigate the risksof financial distress and bankruptcy, as they are more susceptible to suchoutcomes. Policymakers may consider implementing measures to reducethe possibility of financial difficulties, such as reducing reliance on debtfinancing and promoting equity financing opportunities.