Software engineering is one of the most recent additions in various disciplines of system engineering. It has emerged as a key obedience of system engineering in a quick succession of time. Various Software Engineering approaches are followed in order to produce comprehensive software solutions of affordable cost with reasonable delivery timeframe with less uncertainty. All these objectives are only satisfied when project's status is properly monitored and controlled; eXtreme Programming (XP) uses the best practices of AGILE methodology and helps in development of small size software very sharply. In this paper, authors proposed that via XP, high quality software with less uncertainty and under estimated cost can be developed due to proper monitoring and controlling of project. Moreover, authors give guidelines that how activities of project management can be embedded into development life cycle of XP to enhance the quality of software products and reduce the uncertainty.