OBJECTIVES:To outline the spectrum of bacteria causing pneumonia and the pattern of antimicrobial sensitivity in outpatients with pneumonia in a tertiary care hospital in Himachal Pradesh. METHODS: Sputum of 108 immuno competent pneumonia patients attending outpatient departments of Medicine and Pulmonary medicine of Dr. R. P. Government Medical College, Kangra at Tanda was sent for Gram staining and culture and sensitivity testing. RESULTS: Commensals were detected in most of the cases (32, 29.6%) followed by Staphylococcus aureus in 17(15.7%) and Streptococcus pneumoniae in 16(14.8%). This was followed by three Gram negative organisms namely E Coli (11, 10.2%), Pseudomonas (10, 9.2%) and Klebsiella (8, 7.2%). No growth was obtained in 7(6.5%) and other organisms were isolated in 7(6.5%) specimens. Staphylococcus aureus was sensitive to vancomycin, clindamycin, cefoxitin, azithromycin and cotrimoxazole. Streptococcus pneumoniae was found to be sensitive to vancomycin, clindamycin, gentamicin, azithromycin, penicillin, cotrimoxazole, amoxicillin+clavulanic acid. Klebsiella was found to be sensitive to imipenem, azithromycin, ciprofloxacin, gentamicin and amoxicillin+clavulanic acid. E coli was sensitive to imipenem, gentamicin and amoxicillin+clavulanic acid. Pseudomonas aeruginosa was found to be sensitive to gentamicin, ceftazidime, imipenem, ticarcillin and piperacillin. CONCLUSION: Staphylococcus aureus and Streptococcus pneumoniae are the commonest organism causing pneumonia. Streptococcus pneumoniae is resistant to many antibiotics. Azithromycin can be the first line therapy for pneumonia.