Aim and Objectives: The purpose of this study is to define role of MRI in evaluating and grading various ligaments tears. Another objective of this study was to correlate joint effusion with ligamentous injuries. Materials and Methods: This study was conducted using Siemens Essenza 1.5 T MRI machine. Ninety cases were studied and descriptive analysis performed. Joint effusion was measured by documented methods in lateral suprapatellar pouch in antero-posterior measurement at its widest point. Statistical analysis was performed using these values. Results: In present study, the most common ligamentous injury was ACL tears (53%) followed by MCL tears (32%). Complete tear (42%) was common grade among ACL tears and partial tears (81%) were more common among PCL tears. MCL tears were more common than LCL tears and grade I was commonest grade among them. Joint effusion more than 10 mm in lateral suprapatellar pouch was associated with 25 out of 27 patients (i.e. 92.59%) with higher grades of ligamentous injuries. Conclusion: MRI is excellent non-invasive modality for evaluation and grading of ligamentous injuries of knee joint. Joint effusion of more than 10 mm in lateral supra-patellar pouch was associated with higher grades of ligamentous injuries.