Abstract: This article reports on an introspective study that examined the relationship between knowledge sources used in inferencing and vocabulary retention. It also tries to investigate retrieval of inferred words in comparison to words that are checked in dictionary. 10 TEFL BA students of Khormuj Islamic Azad University participated in this research. The results indicated that higher amount of linguistic knowledge sources used while inferencing leads to better retention of new words. It was also revealed that there was a significant relationship between retrieval of inferred words in comparison to words that are checked in dictionary.