Introduction: Leukemiais the most common type of childhood cancer seen in India.The use of non-pharmacological intervention like puppet therapy having greater implication in the reduction of anxiety also helps the children to cope with the situation.The study was to assess the anxiety level on children suffering from leukaemia and determine the effect of puppet therapy on anxiety. Methodology: A quasi-experimental non-randomized controlled group study design was undertaken in SCB and Acharya Harihar Regional Cancer Centre, Cuttack. Among all the children admitted with leukaemia and fulfil the inclusion criteria, 40 children were selected conveniently and assigned equally in both the groups. The standardised Hamilton Anxiety scale was used to measure the anxiety by interviewing, observation and assessment technique. This scale is a self-report measure of anxiety consist of 14 items which were scored as ≤17 for mild, 18-24 for moderate, 25-30 as severe. The puppetry was shown to the sample for 5 days with 15 minutes play by using hand puppets, stick puppets and readymade finger puppets. Result: The mean age was 6.5 in experimental and 6 in the control group respectively. Most of the children were male is 75% in both groups.The mean anxiety scorebefore and after puppet therapy was 14±4.94 and 8.95±2.87. The mean differencewas found extremely significant. Similarly, the post-test of anxiety mean score among the children who are suffering from leukaemia showing puppetry was 8.95±2.87 and 12.4±3.97 respectively between experimental and control group also found extremely statistically significant. There was a significant positive relation (p< 0.001) between age, sex, day of hospitalization, family income, treatment and previous history of hospitalization with pre-test anxiety score.Conclusion: It was concluded that the use of puppet therapy as an innovative method to overcome anxiety among children who are suffering from leukaemia.