Background: Induction of labour (IOL) is a commonly performed intervention done when maternal or fetal advantages outweigh the risks of continuing pregnancy. The success of IOL is influenced by several factors. Objectives: To evaluate the factors associated with outcome of induced labour and to assess maternal and neonatal outcomes among women undergoing induction of labour at a tertiary care hospital. Methods: A prospective observational study was conducted in the Department of Obstetrics and Gynaecology at a tertiary care hospital from September 2022 to March 2024. A total of 472 women who underwent induction of labour were enrolled. Several factors affecting the IOL in terms of maternal and neonatal outcomes were analysed. Results: Out of 472 women, 340 (72.0%) achieved vaginal delivery, while 132 (28.0%) underwent lower segment caesarean section (LSCS). Booked antenatal status was significantly associated with vaginal delivery compared with unbooked status (76.5% vs. 61.8%; p=0.001). Multigravida had a higher vaginal delivery rate than primigravida (79.5% vs. 54.3%; p=0.031). NICU admission was required in 24.6% of neonates. Conclusion: Induction of labour is a safe and effective obstetric intervention with a higher rate of vaginal delivery when undertaken for appropriate indications