Aim: This study was done to compare the efficacy of misoprostol and oxytocin in prevention of postpartum haemorrhage. Methods: This study was done for a period of one year from January 2016 to December 2016 in patients who were admitted for delivery in obstetrics and gynaecology department of JLNMCH, Bhagalpur. Thorough examination, investigations and management were performed. A total of 200 cases were taken in the study. Patients were divided in to two groups OF 100 each. Group A (Misoprostol rectally given immediately following delivery of baby) and Group B (Oxytocin given intramuscularly immediately after delivery) Results: The average blood loss after delivery in Group A was 200ml and in Group B it was 160ml. Change in Haemoglobin percentage was 1gm/dl in Group A and 0.70gm/dl in Group B. Incidence of PPH was 5% and 3% in group A and group B respectively. Group A patients have more complaints of fever than Group B. Conclusion: it is seen in this study that oxytocin is better in management of PPH. And thus oxytocin can be used in third stage of labour to prevent PPH.