Background: The amniotic fluid which sheathes the fetus acts to be a protective shroud. Fetal well-being is embodied by the amniotic fluid index. If the amniotic fluid index exceeds 25cms, it leads to polyhydramnios resulting in high rate of perinatal mortality and congenital malformations. Objectives: To evaluate the occurrence of congenital malformations and report perinatal outcome in polyhydramnios. Study Design: A Prospective study was conducted in Neonatal intensive care unit and gynecology wards of Owaisi Hospital and Research Centre for a period of 2 years. Methods: 50 cases of polyhydramnios were evaluated and followed up based on amniotic fluid index which was measured by conducting ultrasound scans; congenital malformations were observed both by ante natal and post natal ultrasound scans. The perinatal outcome such as congenital anomalies, fetal distress, mortality etc was recorded. Results: 50 cases of Polyhdramnios formed the study population. Congenital malformations were found in 12% neonates of which Diaphragmatic hernia and hydrops fetalis were most commonly noted. 8% neonatal deaths were recognized. 2% cases with fetal distress were observed. If amniotic fluid index exceeded 30cms there was increased mortality rate and congenital malformations. Conclusion: Attributable to Polyhydromnios, risk of congenital malformations, neonatal mortality and fetal distress was often observed and risks were greater with amniotic fluid index over 30cms.