Objectives: A significant reduction in the amount of amniotic fluid co-relates with an increased rate of both perinatal morbidity and mortality. The objectives of the study are to determine the neonatal outcome, and the appropriate route of delivery in isolated oligohydramnios. Methodology: This was a prospective case-control study conducted over a period of 22 months (November 2006 to August 2008) at department of obstetrics and gynecology, Basaveshwar Teaching and General Hospital and Sangameshwar Hospital, attached to Mahadeveppa Rampure Medical College, Gulbarga. The study consists of analysis of pregnancy outcome in 50 antenatal patients with the ultrasound diagnosis of oligohydramnios (AFI ? 5) at or beyond 34 weeks of gestation. Oligohydramnios was defined as ultrasound diagnosis of amniotic fluid index ?5cm. Inclusion Criteria included singleton pregnancy of any order of parity with gestational age ? 34 weeks and AFI ? 5cm. Multiple gestation, gestational age __ampersandsignlt;34 weeks and __ampersandsigngt;40 weeks, AFI __ampersandsigngt; 5cm and __ampersandsignlt;5cm, ruptured membrane, pregnancy induced hypertension and congenital anomalies were excluded from the study. The results were analyzed using parameters like standard deviation, chi square test and __ampersandsignlsquo;Z__ampersandsignrsquo; test. Results: There was statistically significant difference in two groups in non-stress NST, rate of induced labor, cesarean section rate, IUGR, low birth weight, admission to NICU and no difference in meconium stained liquor and Apgar score __ampersandsignlt;7 at 5 minutes. Conclusion: Pregnancies with isolated oligohydramnios (AFI ? 5) at or beyond 34 weeks is associated with increased rates of non reactive NST, FHR deceleration during labor, development of fetal distress, caesarean delivery and low birth weight.