  We present BVR polarimetric study of the cool active star LO Peg for the
first time. LO Peg was found to be highly polarized among the cool active
stars. Our observations yield average values of polarization in LO Peg: $P_B
=0.387\pm 0.004%$, $\theta_B = 88\deg\pm1\deg$; $P_V=0.351\pm0.004%$,
$\theta_V=91\deg\pm1\deg$; and $P_R= 0.335\pm0.003%$, $\theta_R =
91\deg\pm1\deg$. Both the degree of polarization and the position angle are
found to be variable. The semi-amplitude of the polarization variability in B,
V and R bands are found to be $0.18\pm0.02$%, $0.13\pm0.01$% and
$0.10\pm0.02$%, respectively. We suggest that the levels of polarization
observed in LO Peg could be the result of scattering of an anisotropic stellar
radiation field by an optically thin circumstellar envelope or scattering of
the stellar radiation by prominence-like structures.
