The present study was conducted to assess the maternal and cord blood hepcidin concentrations in severe iron deficiency anemia (IDA) and to find out its correlation with other iron status parameters. Methods: This prospective observational study was carried out in 30 mothers with severe IDA (hemoglobin < 70 g/L and serum ferritin < 12 μg/L), and 15 healthy nonanemic (hemoglobin ≥ 110 g/L) mothers, who delivered live singleton neonates at term gestation. Mothers and neonates with infection/inflammatory conditions were excluded. Quantitative estimation of complete blood count, serum iron, ferritin, total iron binding capacity (TIBC), and transferrin saturation (Tfsat) was done in maternal and cord blood immediately after delivery by an auto analyzer. Serum hepcidin concentrations were measured by double-antibody sandwich enzyme-linked immunosorbent assay using a Human Hepcidin-25 kit. Data were analyzed by statistical software SPSS 16.0. Results: The serum iron and ferritin concentrations in severe IDA were 6.7 ± 1.8 μmol/L and 4.1 ± 1.4 μg/L in maternal blood, and 9.5 ± 2.6 μmol/L and 55.4 ± 19.7 μg/L in cord blood, respectively, significantly lower than nonanemic controls (p < 0.001). The corresponding serum hepcidin concentrations were 76.6 ± 22.7 μg/L and 110.5 ± 11.8 μg/L, respectively (p < 0.05). The proportion of cord blood/maternal blood hepcidin concentration was similar in both anemic (1.4:1) and nonanemic (1.3:1) mothers. Significant correlation was observed among maternal and cord blood hepcidin concentrations and other iron status parameters. Conclusion: Even in the presence of low serum iron and ferritin, maternal and cord blood hepcidin concentrations remained high in severe anemia. Failure of this proportional suppression of hepcidin indicates poor systemic bioavailability of iron to the mother and poor placental transport.