Anemia of chronic disease (ACD) is defined as anemia occurring in chronic infections, inflammatory conditions or neoplastic disorders that are not due to marrow deficiencies or other diseases, and occurring despite presence of adequate iron stores and vitamins. The main underlying reason for ACD is previous chronic inflammation or infection. The present study was conducted to evaluate and compare the hematological parameters in periodontally healthy, gingivitis and periodontitis subjects and thereby assess the relationship between anemia and periodontitis. A total of 60 subjects of age group between 20 and 55 years were recruited as periodontally healthy (n=20), gingivitis (n=20), periodontitis (n=20) groups based on their CPI scores. The hematological parameters: Red blood cells (RBC),Hemoglobin (Hb), Erythrocyte sedimentation rate (ESR) were recorded for all the three groups. Statistical test used was ANOVA. The mean RBC score and Hb score were found to be highest in healthy group, followed by gingivitis group and periodontitis group, whereas the mean ESR score was found to be highest in periodontitis group, followed by gingivitis group and healthy group. It was concluded from the study that a positive relationship was observed between hematological parameters and severity of periodontal disease, suggesting that like any other chronic disease periodontitis may also leads to anemia.