Background: Amniotic fluid is a clear, slightly yellowish liquid that surrounds the fetus during pregnancy. It is contained in the amniotic sac. During pregnancy, it acts as a shock absorber, maintains even temperature, allows for growth and free movement of the fetus and prevents adhesion between fetal parts and amniotic sac. The aim was to study fetal and maternal out come in cases of low AFI and normal AFI. Methods: A hospital based Prospective comparative study was conducted in the Department of Obstetrics and Gynaecology, SMS Medical College, Jaipur from April 2017 to September 2018. Study conducted on 110 pregnant women at term (37-40 weeks) attending antenatal clinic. They were divided in to two groups. Group-A comprising 55 patients with AFI >5 cm and Group-B comprising 55 Patients with AFI less than 5 cm or equal to 5 cm. Results: In our study, Out of 55 oligohydramnios patients, 43.64%(24) were induced, 27.27% (15) were augmented & 29.09%(16) were left for spontaneous progression of labor & out of 55 normal AFI patients 58.18%(32) patients were induced, 29.09%(16) were augmented, 12.73%(7) were left for spontaneous progression of labor. Mean Apgar score at 1 & 5 minute of birth is comparatively low in oligohydramnios patient & nursery admission was more, but only short term neonatal morbidity was seen. No long term consequences were present in these babies. Conclusion: An AFI ≤5 cm detected at term that was at or after 37 completed weeks of gestation in a low risk pregnancy was an indicator of poor perinatal outcome. Oligohydramnios was being detected more frequently nowadays due to ready availability of ultrasonography these days.