This research paper deals with the financial markets, specifically focusing on the transformations in the Stock market microstructure and the influence of high-frequency trading (HFT) activities on market liquidity and stability. The study identifies the pressing need to comprehensively understand the implications of HFT in the context of evolving market structures. Leveraging a mixed-methods approach, the research aims to provide a nuanced assessment of the impact of HFT on market liquidity and stability within the stock market. By integrating primary and secondary data sources, the study analyzes data collected through surveys, interviews, direct market observations, market reports, regulatory filings, and academic journals. The research population primarily consists of registered high-frequency traders, market makers, and key financial institutions operating within the designated financial market. Utilizing a carefully designed stratified random sampling technique, a sample size comprising 10 high-frequency trading firms and 10 market makers is selected for in-depth analysis. Two primary objectives guide the research 1. To analyze the impact of HFT on market liquidity 2. To evaluate the influence of HFT on market stability. To achieve these objectives, the study proposes two key hypotheses: (1) that HFT significantly affects market liquidity, and (2) that HFT has a discernible impact on market stability. These hypotheses will be tested using appropriate statistical methods, including t-tests and regression analysis, to examine the relationship between HFT activities and various market indicators. The findings of this research are expected to provide valuable insights for market participants, regulators, and policymakers, facilitating the development of more informed and effective market regulation and risk management strategies. This research serves as a crucial step toward fostering a deeper understanding of the intricate interplay between HFT activities, market liquidity, and overall financial market stability.