Background: Anaemia is nutritional deficiency disorder which is very common in developed countries and related with inauspicious maternal and perinatal outcome. Its prevalence in pregnancy is about 50-80% in Pakistan. It is a risk element for low iron stores in babies, preterm delivery, foetal anaemia, low birth weight as well as stillbirth. Objectives: To determine the frequency of low iron store in babies born to iron deficient mothers and effect of maternal anaemia on newborn weight and cord haemoglobin. Study Design: Prospective observational study. Setting: Government Sardar Begum Hospital Sialkot. Period: 1st January 2017 to 30th June 2017. Materials and Methods: 160 pregnant women delivering for antenatal and haemoglobin as well as weight of newborn babies, which was entered in computer software SPSS version 20. Results: Out of 160 mothers, 143 (89.37%) were anaemic. Out of 160 babies, 127 (79.37%) of babies had anaemia. The mean haemoglobin among babies was 12.9±2.01 g/dL. Conclusion: A notable positive correlation with maternal haemoglobin and newborn weight and cord haemoglobin.