Background: Severe maternal anaemia is associated with negative impact on the iron indices of the newborn besides complications like growth retardation or fetal distress. Objectives: To correlate the degree of maternal anaemia with iron indices of the newborn. Method:The descriptive type of observational study was done at a tertiary care centre . Anaemic and non anaemic pregnant women admitted in labor room after 24 weeks gestation for delivery were selected. Delivery was conducted and cord blood sample of the neonate was taken for iron indices study. Results: Mean haemoglobin was 17.8 gm% in neonates of non-anaemic mothers whereas it was 14.1 gm% in neonates of severely anaemic mother’s. Neonatal serum total iron and ferritin levels decreased and total iron binding capacity increased with increasing severity of maternal anaemia. The associations were statistically highlysignificant (p value-0.05). Conclusion: Newborns of anaemic mothers also should also be screened for anaemia and timely interventions taken so as to decrease under five mortality and morbidity.