Background: The postpartum hemorrhage is still remaining a leading cause of maternal mortality, especially in developing countries. Objective: We aimed to determine the efficacy of using tranexamic acid in vaginal delivery to avoid postpartum hemorrhage and to reduce blood loss and hospital stay. Patients and methods: A prospective-randomized clinical trial study was conducted on 92 pregnant women that were prepared for vaginal delivery. They were divided into two groups. Group (A) included 46 pregnant women that received 1 gm of tranexamic acid (TXA group) in the third stage of labour and group (B) included 46 pregnant women that received 10 IU of oxytocin (Non-TXA group) after delivery of the baby. Estimation of blood loss was done. Hemoglobin (Hb) and hematocrit (HCT) values were checked before and 24 hours after vaginal delivery as well as other basic laboratory investigations. Results: In our study, there was no significant difference regarding Hb at pre- but at post-, there was significant decrease in Non-TXA group. There was no significant difference regarding HCT at pre- but at post-, there was significant decrease in Non-TXA group. Blood loss was significantly lower at TXA group. Conclusion: Use of tranexamic acid would help to reduce blood loss during delivery. It is a cheap and readily available drug. The use of TXA decreases need of uterotonics and hence decreases morbidity and mortality.