The aim of this paper is to demonstrate the influence of Dynamic Capabilities in creating Disruptive Innovation. For doing so the concepts of Dynamic Capabilities and Disruptive Innovation are reviewed. The criteria of an innovation named Disruptive Innovation are obtained by comparative study between the various innovation types. To demonstrate the role of Dynamic Capabilities in creating Disruptive Innovation, the Innovation Lifecycle is demonstrated with respect to Dynamic Capabilities. The advantages obtained from Disruptive Innovation and its superiority in comparison with other types of innovation are also portrayed. Suitable examples and case studies are presented to describe certain situations. This paper establishes the required clarification by using comparative methodology for obtaining the results.