AIMS AND OBJECTIVE:To study the effect of perinatal asphyxia on thyroid hormones of term neonates. MATERIAL AND METHODS: It was a prospective case control study and it was conducted in department of pediatrics, Kamala Nehru Hospital Gandhi Medical College, Bhopal. Total 60 full term neonates who have completed 37 wks of gestation at birth included in study, 30 asphyxiated newborn taken as cases and 30 healthy neonates as control. For inclusion of cases criteria was, 1 and 5 minute APGAR score <7 and Control were selected with criteria of 1-minute APGAR score >7 and no sepsis setting. Classification of HIE done on the bases of Sarnat and Sarnat staging. Blood samples were collected for determination of thyroid profile (T4, T3 and TSH), first within 6 hours of birth and seconds 18 to 24hour of age. RESULT: Out of 30 cases, 13.13% were HIE-I, 50% were HIE-II and 36.67% were HIE-III. Mean value of TSH was low at 6 hours as well as at 18-24 hours between case and control group while mean value of T3 andT4 were low at only 18-24hrs of age. CONCLUSION: The mean T3, T4 and TSH levels at birth of asphyxiated newborn was significantly lower than the control group at 18-24 hours. Due to low TSH surge, asphyxiated babies could not increase their T3 and T4 level significantly.