The surface distribution of M stars is studied by differentiating them according to whether they show a circumstellar dust shell (CS) or not. Analysis shows that galactic latitudinal and longitudinal distributions are not determined by spectral subclasses alone. The study also indicates that the M type stars with CS have higher intrinsic luminosities in the K band than those without CS. The M stars used in the study are obtained from the Two Micron Sky Survey catalogue (IRC) which is an unbiased sample with respect to the interstellar extinction. The CS feature is identified by the ratio of flux densities at 12 and 25 μm in the IRAS point source catalog.