Anemia is not a diagnosis; it is a manifestation of an underlying disorder. Thus, even mild, asymptomatic anemia should be investigated so that the primary problem can be diagnosed and treated. Laboratory evaluation begins with a CBC, including WBC and platelet counts, RBC indices and morphology (MCV, MCH, MCHC, RBC distribution width [RDW]), and examination of the peripheral smear. In many instances routine test like Hb, TLC, DLC, GBP fail to decide anemia especially in early cases and also fail to decide the type of anaemia. In such situations the RBC indices and RDW are very useful. These become abnormal even before changes in routine hemogram are appreciable. Thalassemia minor poses problems in diagnosis because GBP reveals no features of hemolysis rather it has microcytic hypochromic picture which has similarity with iron deficiency anemia. It is difficult to differentiate between two by only GBP. Several decision making rules have been proposed for differentiation. METHOD: The present study was carried out in 100 cases to evaluate anaemia in different age groups based on RBC Indices and RDW and to evaluate sensitivity of RBC indices and RDW in diagnosis of anaemia. Cases showing positivity by various rules and RDW in favour of thalassemia minor were subjected to Hb electrophoresis for confirmation of diagnosis. RESULTS: RBC indices are more sensitive for diagnosis of microcytic hypochromic anemia, normocytic normochromic anemia and macrocytic anemia than PBS alone. RDW-CV is superior to all in use to differentiate iron deficiency anemia and thalassemia minor having high sensitivity 87.3% and specificity 90.5%.