Background: Premature rupture of the membranes at term is spontaneous rupture of the membranes after 37 wks of the gestations and before the onset of the regular painful uterine contractions .It occurs in ten percent of cases .These cases are either managed conservatively or by immediate induction of labour. Objective: To find out the efficacy and safety of induction of labour versus expectant management in women with premature rupture of membranes beyond 36 weeks gestation, in terms of induction delivery interval, operative interventions, and fetal outcome Material and Methods: A prospective, randomized controlled study was carried out for a period of two years from November 2008 to October 2010 at Rural Medical College, Loni. One hundred pregnant women with term PROM were assigned randomly, each in induction and expectant group. Results: .The mean interval from induction to delivery was significantly shorter in the induction group as compared with expectant group. Incidence of maternal morbidity was comparable in both the groups Neonatal morbidity was higher in expectant group. Incidences of hyper stimulation were more with induction group as compared to expectant group .There was no maternal or perinatal mortality in any group. Intrapartum complications and mode of delivery were similar in both groups. Conclusion: Immediate induction of labour in cases of PROM at term using oral misoprostol resulted in shorter induction delivery interval but increased rate of operative intervention. Maternal morbidity was comparable with induction and expectant line of management. However, neonatal morbidity was higher in expectant group.