Background: Anemia is one of the main nutritional deficiency disorders affecting a large proportion of the population, not only in developing but also in industrialized countries. Anemia in pregnancy is an important preventable cause of maternal and fetal morbidity and mortality. Materials and Methods: All the singleton live born babies born at Adichunchanagiri Institute of Medical Sciences, Mandya from December 2012 to November 2013. Maternal haemoglobin sampling was done under aseptic precautions. To know the severity of anemia, the cases were further divided as per ICMR criteria and 2 ml of cord blood was collected after delivery of the baby for measuring neonate’s cord blood hemoglobin levels. Cord blood < 14 g/dl was considered as neonatal anemia. Results: 1269 mothers in the third trimester were included and hemoglobin estimation was done. 47 (21.36%) anemic mothers had preterm babies. 70(6.67 %) of non anemic mothers had preterm deliveries. Term deliveries constituted (90.8%), 979 (93.32%) were born to non anemic mothers and 173 (78.63%) to anemic mothers. Incidence of low birth weight babies was 24% of which extremely low birth weight babies constituted 1.31%, very low birth weight of 4.26%  and low birth weight were 964( 94.42%). Conclusion: Incidence of preterms, IUGR, low APGAR at 1 min, NICU admissions and neonatal anemia was higher in mothers with anemic Hb levels.