INTRODUCTION: S.pneumoniae is the major cause of morbidity and mortality in India and abroad and carriage is the key to invasive disease. Carriage (20-60%) and invasive disease are more prevalent in children and in the elderly. Increased case fatality is due to the emergence of Penicillin and Multidrug Resistant S.pneumoniae worldwide. Penicillin has been the drug of choice for treatment of pneumococcal infections but the increasing number of reports of penicillin resistant pneumococci (PRP) throughout the world makes it essential to regionally determine the prevalence of PRP. MATERIALS AND METHODS: Nasopharyngeal swabs were collected from children between ≥ 3 months and ≤ 5 years of age attending paediatric immunization OPD in a medical college tertiary care hospital and research centre, Bengaluru, between December 2008 and August 2009 ( 8 months). S. pneumoniae were isolated based on colony morphology, Gram's staining, optochin sensitivity, and bile solubility. Antimicrobial susceptibility testing was carried out by Kriby-Bauer disc diffusion method for recommended commonly prescribed antibiotics. Oxacillin resistant strains denoting penicillin resistance were tested for Minimum inhibitory concentration for Penicillin G by Epsilometer test. RESULTS: 53 (27.89 %) S. pneumoniae were isolated from 190 nasopharyngeal swabs. 9 (16.98%) isolates have been intermediately penicillin resistant by E test. Only 5 (9.43%) and 34 (64.15%) isolates were sensitive to co-trimoxazole and tetracycline respectively. 51 isolates were susceptible to cefotaxime, 48 (90.56%) each were susceptible to erythromycin and ciprofloxacin. 25(47.19%) out of 53 isolates could be recovered at the end of one year stored in STGG medium at -20˚ C. Serogroup types 19, 10, 3, 14, 7, were common among the isolates. CONCLUSION: Carriage of S. pneumoniae is prevalent among young children in Bengaluru, which may predispose them to subsequent invasive pneumococcal diseases. There is decreased susceptibility to penicillin and other recommended antibiotics that may warrant appropriate culture and sensitivity testing during the management of invasive pneumococcal diseases and prescription of antibiotics in general.