Back ground and Objective: Both plasmapheresis and intra venous immunoglobulin (IVIG) are effective for Guillain-Barré syndrome (GBS) but differ in cost and ease of administration. The aim of this study was to evaluate and compare clinical outcome after treatment with IVIg and plasmapheresis in patients with various GBS subtypes and assess their cost effectiveness. Methods: Thirty seven consecutive GBS patients, recruited from May 2008 to September 2012, from Department of Neurology, Yashoda hospital Hyderabad, underwent detailed clinical and electrophysiological assessment. Patients randomly received either IVIG or plasmapheresis. Outcome was measured using change in mean motor power and Hughes grade at discharge. Effectiveness and duration of hospital stay was compared with cost effectiveness of both therapies. Results: Out of 37 patients; men were 23 (62.1%), mean age was 42.3 +14.1 years. Electro physiologically acute inflammatory demyelinating neuropathy (AIDP) was most common (56.7%). Nineteen patients (51.3%) received IVIG and plasmapheresis was done in 18 (48.6%). Cost of plasmapheresis was significantly lower (mean USD 2,584.5 versus USD 4,385.3) (p=0.01). At discharge, significant and similar improvement was noted in both groups although duration of hospital stay was longer in plasmapheresis group Three patients (2 in plasmapheresis and one in IVIG group) died. Conclusion: In developing countries, plasmapheresis may be a better option in treatment of GBS.