Background: Multiple choice questions (MCQs) are most commonly used assessment tool in undergraduate medical examination. Assessment method must be reliable and valid. To improve quality of MCQs, item analysis was carried out by determining their validity and reliability using parameters like difficulty index, discrimination index, distractor efficiency and Cronbach’s alpha value.Methods: Study was carried out among 193 second year medical students. Each student was given 40 MCQs of 1 mark each. After assessment of MCQs, validity of test was analyzed by using difficulty index, discrimination index and distractor efficiency while reliability was analyzed by using Cronbach’s alpha.Results: Mean ± SD of difficulty index, discrimination index, functioning and non-functioning distractors were 59.80±23.38, 0.25±0.12, 1.98±0.92 and 13.25±13.05 respectively with reliability value of 0.7. About 47.5% items had moderate difficulty index, 22.5% items have excellent discrimination index with 35% items having 100% distractor efficiency. Reliability of test as measured by Cronbach’s alpha value was 0.7. There was weak correlation between difficulty index and discrimination index.Conclusions: It is concluded from study that given MCQs test have reliability but not validity and needs to improve quality of MCQs. Validity of test is improved by improving difficulty index, discrimination index, distractor efficiency of items.