INTRODUCTION: Each unit of blood is precious and its judicious use is important to minimize its losses. The aim of this study was to analyse the reasons for discarding the blood bags and components in the current set up and optimize the use. MATERIALS & METHOD: A retrospective study was carried out over 36 months in the blood bank of a tertiary care hospital and the data collected and analysed was number and types of blood and blood products generated and discarded and reasons for discarding bags. RESULTS: Total 6554 blood and component bags were collected and the total discard rate was 7.67%. Packed cell volume, Platelets, Fresh frozen plasma and Whole blood were discarded at the rate of 48%, 32%, 11% and 9% respectively. Expiry of the product (58.3%) was the commonest cause of discard followed by transfusion transmissible infections (28.4%); HBV and HCV being the major components. Other causes were leakage, insufficient quantity, icterus, lipaemia and clotting. CONCLUSION: The rate of discard has already dropped by 46.8% from 2016 to 2018. Better selection of donors, training and evaluation of the staff would help us to further reduce the wastage due to non-utilization of components.