Hi Ravi,
1) You don't need C3, it would make the gain of the LM386 too high.
2) You should add a 0.1uF coupling and DC blocking capacitor between the output of the 555 and the volume control.
3) You should pass the output of the 555 through the switch to the coupling capacitor added to the volume control. You are switching the ground pin of the 555 now, which makes it sound funny and with a "pop" each time it starts running.
4) You should change the values of R1 and R2 to be 47K each. With their existing 100 to 1 ratio, the output would be very narrow pulses that sound buzzy.
5) I hope you are using a volume control with a logarithmic audio taper. A linear pot would make it too loud unless it was turned almost to zero.