The aim of this study is to analyze the hyperinflation that emerged in the Ottoman Empire as a result of the financing method of the large-scale costs of the World War I - the first total war in history - and the financial measures implemented against this inflation. In this context, firstly the indirect and direct costs of the World War I were discussed, then the two alternative financing methods – namely the British and German methods - were explained and finally the inflationary effects of war financing in the Ottoman Empire and the fiscal policies implemented against these effects were examined. It has been shown that it was inevitable for a country with an underdeveloped economic and financial system like the Ottoman Empire, entering such a costly war and affording to continue this war to experience a financial collapse, and it is also shown that the inadequate financial measures had no effect on inflationary bias.