AIM: To find out the sensitivity of correlation of Amniotic fluid index to perinatal outcome and the obstetrical management and its effect on maternal health in uncomplicated term pregnancy. SETTING: The study was conducted as a prospective observational study on 300 ultrasound proven cases at PRM MEDICAL COLLEGE, Baripada, Odisha, India. METHOD OF STUDY:In our study we studied 600 cases who fulfilled our inclusion and exclusion criteria, the eligible cases were recruited from opd, ipd and labour room from our institute. For all the selected cases detailed history was taken and clinical examination was performed and gestational age assessed. For all the women, ultrasound examination was done and amniotic fluid index was calculated by four quadrant technique after informed consent was obtained. Approval from the Institutional ethics committee .Amniotic fluid index estimation was done by B-Mode real time electronic array linear scanner using four quadrant technique described by phelan et al. Women were divided into three groups based on their AFI: Normal AFI >5– 24 cm, Oligohydramnios ≤5cmPolyhydramnios ≥25 cm Maternal outcome in the form of mode of delivery, labour related events like abnormal fetal heart rate and cesarean section for fetal distress were studied. Perinatal outcome in the form of APGAR score at 1 minute and 5 minute, birth weight, meconium staining of liquor and NICU admissions were studied. Indications for NICU admission included meconium aspiration syndrome, neonatal depression, cyanosis, transient tachypnoea of newborn and jaundice. Results were tabulated and statistically analyzed.