Background: Amniotic fluid volume and color are crucial for fetal health assessment and postnatal prediction. Oligohydramnios and meconium-stained amniotic fluid increase the likelihood of poor neonatal outcomes Method: A comparative prospective cross-sectional study was conducted at the Obstetrics and Gynaecology Department of teaching hospitals affiliated with J.J.M. Medical College, Davangere, from March 2021 to August 2022. 100 term pregnant women in active labor were enrolled in the study. Clinical and ultrasonographic assessments were performed to evaluate the Amniotic Fluid Index (AFI), non-stress test (NST) reactivity, properties of the amniotic fluid, and neonatal outcomes were recorded. Results: Maternal age exhibited a significant correlation with meconium-stained liquid (p=0.026). The non-reactivity of NST was significantly higher in the meconium-stained liquor groups (thin: 50%, thick: 33%) compared to clear liquor (16%) (p=0.011). A low AFI of <8 cm was observed more frequently in the thin meconium-stained liquid (75%) than in the clear (54.67%) and thick meconium-stained groups (22.2%). Thick meconium staining demonstrated significantly lower mean APGAR scores at 1 minute (5.89±0.98) compared to the thin (6.47±2.05) and clear liquor (6.87±1.21) (p=0.007). NST, AFI, and liquor color showed significant correlations with cesarean delivery, NICU hospitalization, and infant morbidity. The predictive sensitivity for neonatal problems was 77.78% for liquor volume, 80% for liquor hue, and 81.82% for NST. Conclusion NST, AFI, and amniotic fluid color affect fetal health. Oligohydramnios, abnormal NST, and meconium-stained amniotic fluid increase the risk of surgical delivery and lower APGAR scores.