Extended spectrum beta – lactamases (ESBLs) are on the rise in hospitalsettings across the globe. The presence of ESBLs significantly affects the outcome of an infection and poses a challenge to the management of infection worldwide. Therefore, the aim of the present study is to determine the prevalence and susceptibility of extended spectrum beta – lactamase in urinary isolates in a regional hospital, Nandyal, Andhra Pradesh. A total of  300  urinary tract specimens collected from  inpatients  of  Department of urology over a period of one year from January 2015 to January 2016. Antimicrobial susceptibility testing was determined to commonly used antibiotics. The prevalence of ESBL was 62.5%. The ESBL producing isolates were significantly resistant (p < 0.01) to ampicillin, trimethoprim /sulfamethoxazole, norfloxacin and nalidixic acid as compared to non–ESBL producers. Multidrug resistance was significantly (p < 0.01) higher (69%) in ESBL positive isolates than non–ESBL isolates (21%). Knowledge of the prevalence of ESBL and sensitivity pattern of bacterial isolates in a geographical area will help the clinicians to formulate the guidelines for antibiotic therapy to avoid inappropriate use of extended spectrum cephalosporins.