In the study, the effect of derivative usage on the firm's value is examined by testing 236 Turkish non-financial firms from 2009 to 2012. The aim of the study is to determine whether the use of derivatives increases or decreases firm value. Using Tobin's Q as a proxy for firm value on multivariate tests, a positive relation is found between hedging and firm value. However, the coefficients of hedging variables are insignificant. Thus, there is no evidence that hedging has any significant positive effect on firm value. The finding of this study is consistent with MM theory.