Background: the third stage of labor is defined as the period of time between delivery of the fetus and delivery of the placenta. The most common complication accompanying this stage is postpartum hemorrhage (PPH) and prolonged third stage of labor owing to placenta retention and uterine atony are among the underlying cause of most cases of PPH. The duration of the third stage of labor is 5-15 min. Aim: to assess the efficacy of intraumbilical vein oxytocin in reducing duration of third stage of labour and the amount of blood loss. Patients and Methods: this study included 150 women attending the delivery room of Department of Obstetrics and Gynecology which was divided according to the inclusion and exclusion criteria into two groups: Group A (study group): include 75 cases which received 10 IU (1ml) of oxytocin in umbilical vein. Group B (control group): include 75 cases which received 1ml of saline in umbilical vein. Results: the time of third stage took seconds in each group with no statistically significant difference detected (p>0.05). Conclusion: intra-umbilical oxytocin is a useful alternative in patients where methylergometrine is contraindicated or in cases where intravenous fluids need to be restricted. For optimum effect, rapid injection immediately after clamping of the cord is essential.