Context: Methicillin Resistant Staphylococcus aureus (MRSA) prevalence is increasing worldwide and it remains as a major cause of morbidity and mortality in hospitalised patients due to its versatile behaviour towards antibiotics. Aims: This study was done to find out the prevalence and antimicrobial susceptibility pattern of MRSA isolates at our hospital setup, in order to guide policy on the appropriate use of antibiotics. Settings and Design: The study was a prospective observational study, carried out in the Department of Microbiology, GSL Medical College, Rajahmundry, Andhra Pradesh. Methods and Material: A total number of 288 strains of Staphylococcus aureus were isolated from various clinical samples received in the laboratory. Staphylococcus aureus was identified by routine standard operative procedures. Antimicrobial susceptibility testing was done by Kirby-Bauer disc diffusion method and the results were interpreted following Clinical Laboratory Standards Institute (CLSI) guidelines. Methicillin resistance was screened by using oxacillin disks [1 mcg]. Statistical analysis used: Data obtained was analysed and presented in counts and percentages. 95 % confidence interval values were also calculated. Results: Methicillin resistance was documented in 120 [41.6%] Staphylococcus aureus isolates. Most of them were isolated from pus, wound swabs, urine and respiratory samples. All MRSA isolates were resistant to penicillin and cefepime. The resistance was high to tetracycline, erythromycin, co-trimoxazole piperacillin / tazobactam, and ciprofloxacin; moderate to aminoglycosides, clindamycin, chloramphenicol and levofloxacin. All MRSA strains were susceptible to vancomycin. Overall, 63.3% [76/120] of MRSA strains were found to be resistant to more than 6 antimicrobials tested. Conclusions: Our study emphasizes the need for regular surveillance and formulation of a strict drug policy on the appropriate use of antibiotics to control MRSA infections. This would also minimise the irrational use of vancomycin and the emergence of vancomycin resistant Staphylococcus aureus [VRSA].