Introduction: Anesthesia is crucial in ensuring patient comfort and safety during surgical procedures. Among the various techniques available, inhalational anesthesia and intravenous (IV) anesthesia are the two most commonly used methods in outpatient surgeries. Objectives: The basic aim of the study is to compare inhalational and intravenous anesthesia in terms of recovery time, postoperative nausea and vomiting (PONV), patient satisfaction, and side effects. Methodology: This prospective cohort study was conducted at Sri Siddhartha Medical College Hospital, Tumkuruduring June 2023 to May 2024. Data were collected from 455 patients according to the criteria of the study. Out of these, 227 received inhalational anesthesia, while 228 were administered intravenous anesthesia. Key outcomes measured included recovery time, incidence of PONV, patient satisfaction, side effects, and cost per procedure. Results: Data were collected from 455 patients. The mean age was 45.12 ± 12.01 years for the inhalational group and 44.38 ± 11.22 years for the intravenous group (p = 0.45). The gender distribution, ASA classification, comorbidities, body mass index (BMI), and smoking status were also comparable between the two groups, with no statistically significant differences (p-values ranging from 0.65 to 0.92). Patients in the intravenous anesthesia group had significantly faster recovery times (45 ± 10 minutes vs. 65 ± 15 minutes, p < 0.001). Conclusion: It is concluded that intravenous anesthesia offers significant advantages over inhalational anesthesia in outpatient surgery, including shorter recovery time, lower incidence of postoperative nausea and vomiting, higher patient satisfaction, and improved cost-effectiveness.