Background: Gestational diabetes mellitus is carbohydrate intolerance of variable severity with onset or first recognition during pregnancy. Indian women are considered to be a high–risk population for developing gestational diabetes mellitus. GDM contributes to several maternal and fetal complications. Aim: To study the maternal and perinatal outcome in women diagnosed with GDM. Objective: This study was undertaken to study the maternal and fetal outcome in pregnancy with GDM and to asses the NICU admission of infants of GDM mothers. Materials and Methods:Methods: The study consisted of 50 pregnant women with GDM admitted for delivery at ASRAM hospital, ELURU. Results: Out of 50 patients, 40% had premature labour, while 16% had associated Hypertensive disorders in pregnancy. 12% had IUFD. 68% of the patients delivered by LSCS. A total of 66% of the babies were admitted to NICU. The fetal complications included 34% hypoglycemia, RDS in 20%, TTNB in 31%,48% had jaundice, 1baby had a congenital anomaly. Neonatal mortalityoccured in 2 babies. Abbreviations : GDM= Gestational Diabetes Mellitus , NICU =Neonatal Intensive Care unit, RDS = Respiratory Distress Syndrome, TTNB = Transient Tachypnea of Newborn, IUFD = Intra Uterine Fetal Demise, LSCS = Lower Segment Caesarean Section . Conclusion: Diabetes mellitus is one of the most common endocrine disorder found during pregnancy. It is associated with various maternal and fetal complications. Hence the need for early diagnosis and treatment. The neonatal complications like hypoglycemia, RDS, TTNB, hyperbilirubinemia, low Apgar are increased in babies of GDM mothers. Most of the babies need NICU care for observation up to 48–72 hours or in view of the morbidity. Good glycemic control in GDM cases decreases both maternal and fetal morbidity.