Introduction: Premature rupture of membranes (PROM) has an incidence of about 8–10% of all pregnancies and is a very significant event. As the interval between the rupture of membranes at term and delivery increases, so does the risk of foetal and maternal infection. Some believe that expectant management doesn’t increase the perinatal and maternal mortality & immediate induction leads to an increased caesarean section rate; while some believe that there is increased incidence of neonatal & maternal infection if the delivery occurs beyond 24 hours following PROM. Aims & Objectives: This study was an attempt to compare the neonatal and maternal outcome between immediate versus delayed induction with oxytocin at term in PROM at our hospital. Material & Methods: A hospital–based study in women admitted to Obstetrics & Gynaecology department; SMCH, Silchar was conducted with sample size of 140 patients in the age group between 19–35 years with gestational age between 37–42 weeks. Women were randomly assigned to early induction (within 6 hours) of labour with oxytocin or delayed induction (within 12 hours) with oxytocin & results compared. Statistical analysis used student’s t–test, chi–square test with 95% confidence interval. Results: The rates of CS and neonatal infection were not significantly different among both groups. However, induction to delivery interval was significantly less in early induction group. Clinical chorioamnionitis was less likely to develop in early induction group. C–section for the indications of failed induction and non–progress of labour were significantly higher in the early group. Conclusion: Delayed induction after a waiting period of 12 hours could be a reasonable option in term PROM and it decreases the number of operative deliveries without compromising the maternal & neonatal outcome