Background: In pregnancy, anaemia has a significant impact on the health of fetus as well as that of mother. It is one of the leading causes responsible for maternal and perinatal morbidity and mortality. The objectives of the study are to find out the effect of severe anaemia on women in labour affecting maternal and fetal outcome. Materials and Methods: This a prospective case control study undertaken in the Department of Obstetrics and Gynaecology, Govt Maternity Hospital, Petlaburz attached to Osmania Medical College, Hyderabad. The period of study was from 1st December 2019 to 31st December 2021.There were a total of 160 study subjects, 80 cases of severe anaemia (Hb<7gm %) and 80 non anaemic controls (Hb≥ 11gm %).