INTRODUCTION: Intraoperative blood loss is considered to be one of the major complications in neurosurgical operations and neurosurgical procedures and is directly related to the postoperative morbidity and mortality. Administration of Tranexamic acid [TXA] by reducing blood loss has resulted in survival benefits in Traumatic Brain Injury [TBI] population, as shown in two recent meta-analysis. AIMS AND OBJECTIVES: To study the effect of tranexamic acid on blood loss in brain tumor resection surgery. MATERIAL AND METHODS: Patients of either sex, aged 18-65 years who were undergoing brain tumour resection were randomly allocated to either group - the study group and the control group (30 patients in each group). Patients in the study group received tranexamic acid intravenously @10 mg/kg body weight over 10 minutes after induction and then maintenance of continuous infusion @ 1mg/kg/hr intraoperatively till skin closure. Patients in the control group received the same volume of saline per kg body weight as the volume of tranexamic acid in study group. RESULTS: The average drop in haemoglobin and HCT was significantly lower in TXA group. Accordingly, amount of blood loss was less in TXA group compared to saline group. (332ml vs 576 ml; p = 0.011). CONCLUSION: From our study, it was concluded that the administration of TXA resulted in a significant reduction in blood loss. TXA can thus be suggested as a cost effective method of reducing mortality due to hemorrhage in brain tumor surgery. Keywords: Tranexamic acid [TXA], Traumatic Brain Injury [TBI].