Introduction: Acute malnutrition is a global health problem. In India, 38% of under-5 children are stunted, 21% are wasted and 36% are underweight. Prevalence in Karnataka of wasting is 26.1%, Severe Acute Malnutrition (SAM) is 10.5% and that of diarrhoea and pneumonia is 4.5% and 1.2% respectively. Both SAM and Moderate Acute Malnutrition (MAM) have serious consequences. This study was undertaken to find the proportion of MAM among children with pneumonia and diarrhoea. Objectives: To study the prevalence and severity of malnutrition (SAM and MAM) among children admitted with pneumonia and acute diarrhoea. Methodology: Cross-sectional study of 97 children aged 1 month to 5 years admitted with pneumonia or acute diarrhoea were included. Anthropometry, treatment details and complications were recorded and analysed. Diagnosis of Pneumonia, diarrhoea, SAM and MAM was based on WHO guidelines. Results: More females were malnourished when compared to males. Prevalence of diarrhoea and pneumonia were the same among MAM and SAM children. Association of the severity of malnutrition with complications and with the duration of hospital stay was noted. Conclusions: Complications and morbidities in MAM are similar to SAM, hence, it is important to diagnose MAM and treat it vigilantly as in SAM. It is important to recognize and monitor MAM which may often go neglected.