This study examines how usage of social media influence political polarization. Using data from the students of different public and private universities of Lahore, this study investigates the association between usage of social media and political polarization and proposes that political engagement and political loyalty can be potential mediators between the relationship of social media usage and political polarization (issue based, leadership based, and party based). Correlation research design was used to collect the data. A sample of 350 students were taken through purposive sampling technique. Smart Partial least square 3.2.7 has been used to analyze and test the conceptual model. Findings show that usage of social media has significant direct effect on political engagement and political loyalty. In addition to this, social media usage is a significant predictor of political polarization. Results further show that indirect effect of social media usage on polarization was mediated by political engagement and party loyalty. We observed that more usage of social media helps the participants to engage in politics and identify themselves with a certain political party. This study has highlighted the role of social media in motivating the users towards political participation. This high-level users' participation on social networking sites is creating ideological divergence. The implications of these findings have been discussed in detail.