Efficient utilization of on-chip memory space is extremely important in modern embedded system applications based on microprocessor cores. In addition to a data cache that interfaces with slower off-chip memory, a fast on-chip SRAM, called Scratch-Pad memory, is often used in several applications. We present a technique for efficiently exploiting on-chip Scratch-Pad memory by partitioning the application's scalar and array variables into off-chip DRAM and on-chip Scratch-Pad SRAM, with the goal of minimizing the total execution time of embedded applications. Our experiments on code kernels from typical applications show that our technique results in significant performance improvements.