Amniotic fluid is the nourishing & protecting liquid of the amnion of a pregnant woman& at 10 weeks it contains proteins, carbohydrates, lipids, phospholipids, urea, electrolytes all of which helps in the growth of fetus & in later stages it consists of fetal urine. As the fetus grows amniotic fluid increases to maximum of 800-1000ml at 34 weeks and decreases to 600-800ml at 40 weeks. It protects the baby by cushioning too. Any decrease in the amniotic fluid leads to intra uterine growth restriction, meconium aspiration syndrome, severe birth asphyxia, low Apgar scores, congenital abnormalities, contracture of the limbs, clubbing of feet & hypoplastic lungs. so early detection and intervention might decrease the perinatal mortality and morbidity and decrease in the C-section rate also. Aims & Objectives: To study the effect of severe oligohydramnios on maternal morbidity, neonatal morbidity & mortality & incidence of congenital abnormalities. Materials & Methods: 100 cases of term pregnancies with severe Oligohydromnios admitted to labour room, between June 2013 to Dec 2013 were selected. After considering inclusions & exclusion criteria, a detailed history was taken and general physical examination, obstetric examination& clinical pelvimetry was done & Bishops score was assessed. Severe Oligohydromnios was confirmed by estimation of AFI by USG & in all cases Doppler study was done. Conclusion: Severe Oligohydromnios has been linked with adverse perinatal outcome which includes structural anomalies, SGA, IUGR, post maturity syndrome, cord compression, MAS &FHR variations & increased perinatal morbidity & mortality. Hence it demands early diagnosis, intense antenatal care of maternal & fetal factors, intervention with hydration and isotonic therapy, intense intrapartum care, intervention at the appropriate time to decrease fetal morbidity & mortality.