Abstract: Financial distress is a condition that shows the stage of decline in the companys financial condition that occurred before bankruptcy or liquidation (Plat and Plat, 2002, in Almilia, 2006). Thus, the purpose of this study is to analyze and seek empirical evidence regarding the effect of firm size, liquidity, and leverage on financial distress. The population used in this study is the transportation sub-sector companies listed on the Indonesia Stock Exchange during the 2018-2021 period. Samples were taken using purposive sampling with the final result obtained 42 samples that are ready to be processed by multiple linear regression analysis using SPSS 26 software. The results of this study indicate that leverage has an effect on financial distress in transportation sub-sector companies listed on the Indonesia Stock Exchange during the 2018-2021 period. Meanwhile, company size and liquidity have no effect on financial distress in transportation sub-sector companies listed on the Indonesia Stock Exchange during the 2018-2021 period.