Background: Over the last three decades, spinal anaesthesia has been widely used for herniotomy and other lower abdominal surgeries in paediatric age group. However the children undergoing surgery under regional Anaesthesia require sedation and closed monitoring. General Anaesthesia in paediatric age-group has its own sets of complications like difficult airway and sometimes life threatening complications as bronchospasm, laryngospasm etc may also occur. Methods: In this prospective study, 50 patients of 2 to 7 years divided into two groups, group SA and GA. SA group received spinal anaesthesia, patient were sedated in preoperative room with Dexmedetomidine 1mcg/kg(over 20 minutes infusion) and throughout procedure sedation was maintained on Dexmedetomidine 0.5mcg/kg with infusion. For group GA standard protocol of General anaesthesia was followed. The results were analysed using the Chi- Square Test. Results: The haemodynamic pattern and respiratory function were stable and smooth recovery was seen in group SA. While in group GA, oxygen desaturation was observed in 16% patients in immediate postoperative period. Incidence of nausea vomiting and sore throat was seen in 8% patients of GA group. Conclusion: It can be concluded that spinal anaesthesia is a suitable & alternative anaesthetic technique for paediatric surgery to avoid the incidence of postoperative respiratory complications of general anaesthesia.