Background: To Study immediate outcome of preterm babies during the hospital stay. To study the complications of preterm babies and assess the risk factors for mortality. Materials and Methods: This study was conducted in a tertiary hospital, Eluru at ASRAM medical college which is Prospective and descriptive study conducted on 76 preterm babies, over a period of 2 years from august 2017 to august 2019. Results: The incidence of preterm babies in our study is 16.5%, with maximum distribution of 54% is seen between gestational age of 32–34 wks. The maximum clinical presentations are sepsis (81.5%) , respiratory distress syndrome(68.4%) ,birth asphyxia (33.3%),necrotizing enterocolitis is observed in 13.1%. Mortality was observed in 13.1% .mortality rate was higher in preterm babies complicated either with RDS and with sepsis rather than NEC and HIE etc., Conclusion: According to this study RDS and sepsis, birth asphyxia are the major causes of death in preterm fortunately all are preventive.