Introduction: Amniotic fluid is necessary for normal musculoskeletal development, gastrointestinal tract and lung development. It protects the fetus from trauma against umbilical cord and infections by bacteriostatic property. Oligohydramnios, a deficiency in the amount of amniotic fluid, occurs in 3.9-5.5% of all pregnancies. Most common cause of oligohydramnios is idiopathic (52%). Second commonest cause is PIH (25%). Oligohydramnios may influence maternal, perinatal outcomes. The Amniotic Fluid Index (AFI) is the more commonly employed technique for assessing adequacy of amniotic fluid volume. The sonographic diagnosis of oligohydramnios is usually based on an AFI ≤ 5 cm or on a single deepest pocket of amniotic fluid ≤ 2 cm. Aim: 1) To study the maternal and perinatal outcome in pregnancies with gestational age 34 weeks and above with AFI less than or equal to 5. 2) To compare the maternal and perinatal outcomes of such pregnancies with pregnancies where AFI is 8 to 24. Materials and Methods: The present study was Prospective Analytical hospital-based study conducted at Nazareth Hospital for one-year i.e. (8th September 2017 to 7th September 2018) in the department of Obstetrics & Gynaecology. Patients with AFI less than and equal to 5 was taken as study group (Group I) and AFI 8-24 was taken as comparator group (Group II). This study included 50 number of cases and 100 number of control to compensate for 10% dropouts. Results: Among those women diagnosed with oligohydramnios (</=5) , 44% of patients belonged to primi gravida, most common antepartum complications associated was found to be hypertensive disorder (28%), There was more incidence of induction of labour (65.7%), (64%) underwent caesarean section, fetal distress ( 65.6%) was most common indication, 8% of patients had babies where APGAR score was below 7, 20% of patient had low birth weight babies, 20% babies was admitted in NICU. Conclusion: 1) Amniotic fluid index measurement can be used as a useful adjunct to other fetal surveillance methods, to identify those infants at risk of poor perinatal outcome. 2) AFI </= 5cm is associated with high incidence of thick meconium stained liquor, fetal distress, operative delivery and caesarean section for fetal distress, poor APGAR score, low birth weight, meconium aspiration and perinatal morbidity. 3) As a result, amniotic fluid assessment as an antepartum mode of fetal monitoring, helps an obstetrician better anticipate likely associated problems and plan a timely and appropriate mode of management.