Introduction and Aim: Functional shoulder impingement is a relative loss of subacromial space due to abnormal scapular position and motion. It is characterized by a drooping shoulder and reduced scapular upward rotation and has been implicated in the presence of shoulder impingement. The shrug exercise has been prescribed in shoulder rehabilitation programmes to facilitate upward rotation of scapula by strengthening the upper trapezius muscle. The objective of this study was to compare the effectiveness of standard shrug exercise versus modified shrug exercise (at 30 of glenohumeral abduction) in subjects with functional shoulder impingement syndrome. Materials and Methods: The study involved 30 subjects of 25-40 years of age diagnosed with functional shoulder impingement syndrome secondary to scapular dyskinesis. The subjects were randomly distributed into two groups; group one received the standard shrug exercise, and group two received the modified shrug exercise. The pre-test and post-test pain and function were measured using NPRS and SPADI scales. The exercise was performed with 20 repetitions and 10 second holds 3 times a day for three weeks. Results:The result revealed a significant improvement in pain and function in all subjects who received modified shrug exercise as measured by NPRS and SPADI. The group that received standard shrug exercise too showed improvement, but it was comparatively lesser than group two who received the modified shrug exercise. Conclusion: The study concluded that modified shrug exercise is more effective than standard shrug exercise in subjects with functional shoulder impingement syndrome. © 2018 Indian Association of Biomedical Scientists. All Rights Reserved.