Background:  Malnutrition and impaired early childhood development are two giant childhood health problems in the developing world and both often co–exist. Health, hygiene, immunization, psycho–motor stimulation, home environment, violence, poverty, pollution  have an impact on both nutrition and neuro–development. This study tried to identify the inter–relation of mal–nutrition & neuro–developmental delay in children.Method: 1536 children aged 0–5 years from a rural community were screened for nutritional status using WHO growth charts and developmental status using specific screening tools like Denver Development Screening Test II, TDSC scale and Amiel–Tyson method of tone assessment. Relevant perinatal factors were also recorded.Result:  32.8% children were malnourished  and 6.5% had developmental delay. In 0–3 years age group developmental delay was significantly higher among children with malnutrition (p value <0.05). Conclusion: Malnutrition during 1^st three years of life, is a major risk factor for poor neuro–development. Proper maternal and child nutrition, improved health & hygiene and adequate psychomotor stimulation will improve developmental outcome in children.