Background: Our aim was to compare caudal epidural versus general anaesthesia in paediatric patients for safety, efficacy, post-operative analgesia, cost effectiveness and surgeon's comfort. Material and Methods: 60 paediatric patients 2 -6 years of ASA grade I and II posted for infra-umbilical surgery were randomly divided in to two groups. Group C (n=30) received caudal block anaesthesia using 0.25% Ropivacaine 1ml kg -1 . Group G (n=30) received general anesthesia with Thiopentone sodium, Succinylscoline as induction agent and O 2 , N 2 O, Isoflurane and incremental doses of Atracurium as maintenance. They were extubated in a usual manner after surgery. In both groups pain was assessed by observer pain score. Observation and Results: Cost was less in group C. There was no significant change in hemodynamics in both groups. Duration of rescue analgesia was significant less in group G. Rate of post-operative complication was higher in group G. caudal anaesthesia was much accepted by surgeon. Conclusion: Caudal epidural is quite inexpensive with excellent anaesthesia and satisfactory post-operative analgesia with lesser complication rate.