The paper has reported a cross-sectional sample survey conducted across six villages severely affected by peste des petits ruminants disease to assess the nature and extent of loss in small ruminants. The study is based on the data pertaining to disease incidence, production losses, costs incurred and impact on farm productivity collected though personal interview method. The incidence and mortality rate have been found slightly higher in sheep than goats. The total losses due to disease have been found to range between Rs 918 in sheep to Rs 945 in goats. Reduction in the market value of animals has been recorded as the major loss component as appearance of the animal changes drastically after the illness, costing Rs. 404 (44%) in sheep and Rs 408 (43%) in goat. It is followed by losses in production yield. Expenditure on medicine and infertility has been found to cause more than 80 per cent of the total cost, followed by veterinary and labour services. The study has suggested that timely vaccination could be the best and low-cost preventive measure to control such deadly disease outbreaks.