Context:There is always a dearth of blood available for transfusion which can be reduced with more efficient utilization of blood or blood components Aims:This study was aimed at finding reasons for discarding blood or blood components and to develop plans to reduce wastage Materials and Methods:This was a retrospective observational study in blood bank unit of tertiary care hospital and included data from records for one year(1 st Jan 2014 to 31 st Dec 2014). Majority of blood donations were subjected to blood components processing. Reason for discarding blood or blood components was observed and results were analysed. Results:Total 11923 blood bags were collected, 11804 were subjected to component preparation. Overall discard rate of whole blood and components was 5.8%. Most common reason for discard was TTI (74.2%), of which HCV formed the majority. Non-utilization due to expiry (17.1%), blood sent for quality control(3.9%) and other causes(leakage, contamination, DCT positivity and no available segment for cross match) constituted 4.8% of the discard rate. Conclusions:Proper utilization of blood is needed with ideally zero percentage wastage. Most common reason for discard of blood/blood products in our study was seropositivity, followed by non-utilization of blood/blood products beyond expiry date. Proper screening of donors, detailed history, issuing blood/components based on FIFO (First in First out) policy and regular audit by hospital transfusion committee will help to reduce wastage.