Background & Objective: UTI (urinary tract infection) is the most common among all hospital acquired infections world wide. In UTI, most common organism is E.coli. Organism responsible for the hospital acquired infection may have tendency to develop multiple drug resistance. E.coli acquired from the hospital source and community source may differ in their resistant against antibiotics. Aim: Our aim to study and compare the antibiotic resistant pattern with special reference to ESBL (extended spectrum β lactamase) in the community acquired and hospital acquired common gram negative bacilli causing UTI in patients of district hospital Gandhinagar during period of June 2008 to may 2009. Methods and materials: E.coli from symptomatic UTI cases from both community acquired and hospital acquired UTI at district hospital Gandhinagar during period of June 2008 to May 2009 were tested for the antimicrobial susceptibility testing against 18 drug of various groups performed by Kirby Bauer's disc diffusion method. Isolates resistant to third generation cephalosporin were tested for ESBL production by double disk synergy test method. Results: Overall E.coli was (73.75%) among the all gram negative bacilli of UTI patients. The majority (70%) of the isolates were from female. ESBL prevalence was 12.6% and 25% among community acquired and hospital acquired E.coli respectively. Cephalosporin group of sensitivity was widely varied among both the group compare to other groups of antibiotics and more resistance was found in hospital strain. Discussion and Conclusion: Almost double prevalence of ESBL among hospital strain compared to community strain leads to change in line of management when a hospitalized patient has tendency to develop UTI, plain cephalosporin should not be administered in other diseases also.