Good test data is one of the major factors contributing to successful testing. Efficient test data management is imperative in ensuring software quality. Test data plays a vital role not only in testing but also the entire software lifecycle process. By creating quality test data, defects can be detected at an early stage in the software lifecycle process, which in turn helps to reduce cost and time to market and improves quality. The intent of this paper is to discuss an approach for the creation and utilization of test data, thereby improving the quality and coverage of testing software applications.