Background:The Amniotic fluid index (AFI) is a measurement used during pregnancy to assess the amount of amniotic fluid surrounding the baby in the uterus. The present study was conducted to assess low amniotic fluid index and its effect on perinatal outcome.Materials & Methods:90 antenatal females presenting with term pregnancy based upon AFI, were divided into three groups – group I with AFI<5 cm, group II with AFI≥5-8 cm and group III with AFI>8 cm. Maternal outcome and neonatal outcome were recorded.Results: In group I, group II and group III, Paritywas primiparain 15, 18 and 19 and multipara in 15, 12 and 11 patients respectively. Gestational age (weeks) found to be 37-38 in 13, 16 and 17 and 39-40 in 17, 14 and 13 patients respectively. Reason for admission was decreased AFIin 76, 72 and 4, safe confinement in 12, 11 and 5 and spontaneous onset of labour in 2, 7 and 81 patients respectively. Mode of delivery was FTVD in 14, 15 and 24, spontaneous induced LSCS in 11, 7 and 4 and deceleration in CTG in 5, 8 and 1 patient in group I, II and III respectively. Indications of LSCS was thick MSL in 2, 1 and 1, NPOL in 4, 3 and 2 and previous LSCS in 5, 3 and 1 respectively. Reason for termination was decreased AFI in 23, 14 and 6and spontaneous labour in 7, 16 and 24 patients in group I, II and III respectively. The difference was significant (P< 0.05). NICU admission was seen in 21, 4 and 3. Reason for NICU admission was tachypnea in 9, 1 and 1, LBW in 7, 1 and 1 and RD in 5, 2 and 1. Neonatal outcome was uneventful in 28, 30 and 30 and death seen in 2, 0 and 0 in group I, II and III respectively. The difference was significant (P< 0.05).Conclusion: A major factor in determining unfavorable outcomes for mothers and fetuses is AFI. AFI <5 is linked to poor fetal and maternal outcomes, including as low birth weight, meconium-stained fluid, low APGAR score, and increased NICU admission, as well as greater rates of surgical deliveries. Fetal observation in conjunction with intensive intrapartum care may help reduce unfavorable perinatal outcomes.