The present study was done to analyze drug utilization among Paediatric inpatients and to assess WHO prescribing indicators. A prospective, observational study was conducted in Department of Paediatrics at Vanivilas Hospital, Bangalore, over a period of 1 year (June 2012 to May 2013). Data was collected from case records of inpatients and analyzed using descriptive statistics. A total of 150 inpatients aged 1-5 years were analyzed, which included 80 males and 70 females. Duration of hospitalization was 4-5 days. Respiratory diseases were accounted for 33.33%, followed by gastrointestinal disorders (19.33%). Among them majority of cases were pneumonia (56%) and acute gastroenteritis (82.75%). A total of 854 drugs were prescribed. Most commonly prescribed drug classes were antimicrobial agents (28.10%), drugs acting on respiratory system (12.18%) and NSAIDs (7.50%). Penicillins (28.75%) were most commonly prescribed AMAs, followed by aminoglycosides (23.33%) & cephalosporins (17.5%). Salbutamol aerosol (48.08%) was most commonly used bronchodilator followed by inhaled salbutamol + ipratropium (21.15%). Paracetamol (90.63%) was most extensively prescribed NSAID followed by ibuprofen + PCT (9.37%). 49.06% of drugs were injectables (IV/IM), 44.73% oral and 6.21% inhalational. Average number of drugs prescribed per encounter was 5.69 (±1.4). 62.30% of drugs were prescribed by their generic name. 86.42% were from EML. Polypharmacy and prescription by brand name were common. Use of ‘generic name’ in prescriptions needs to be promoted. Encouraging data on choice of drugs from EML can go a long way in creating awareness and application of essential drug (medicines) concept(s).