Objectives: (i) To assess whether oligohydramnios is associated with adverse pregnancy outcome and (ii) to compare the pregnancy outcome in this study group with a control group and determine the difference in outcome between the two groups. Methodology: This prospective study was conducted over a period of 1 year (Jan 2014 to Jan 2015). The study was conducted on 80 pregnant women with gestational age > 34 weeks and they were divided into a study group of 40 patients having oligohydramnios and a control group of 40 patients without oligohydramnios. Amniotic fluid assessment was done by ultrasound. The selected end points which were used to judge the pregnancy outcome in both groups of patient were rate of cesarean section for fetal distress, rate of induced labor, presence of meconium in amniotic fluid, apgar score of baby, rate of still birth and intrauterine growth retardation. The outcome of pregnancy in study group was compared with that of control group. Results: The ultrasound examination of patients was done and an amniotic fluid index of 5cm or less was taken as the criteria for diagnosis of oligohydramnios. The indications of ultrasound examination were similar for cases and controls. They included suspected IUGR, maternal hypertension and decreased fetal movements. There was a significantly higher rate of induced labor, cesarean section, IUGR babies, still births, low apgar score and meconium-stained amniotic fluid in the study (oligohydramnios) group as compared to control group. Conclusion: The results of present study indicate that the risk of adverse pregnancy outcome is increased in patients with oligohydramnios. So, its management warrants increased antepartum surveillance for early detection of pregnancy complications and fetal scanning to diagnose malformations or growth restriction.