OBJECTIVE To analyze maternal and neonatal short term outcomes in pregnancies with controlled gestational diabetes mellitus (GDM) versus high risk group without GDM. METHODS The data about all singleton pregnancies with diagnosis of GDM was retrospectively retrieved from patients' files from 1st June 2008 to 30th November 2008 by the Department of Endocrinology, Alnoor Specialist Hospital, Makkah, Saudi Arabia. The diagnosis of GDM was made according to O'Sullivan and National Diabetes Data Group (NDDG) criteria. Subjects were divided into Controlled GDM group (A) and high risk group without GDM (B). Odd ratio (OR) and 95% confidence interval (CI) was measured for GDM. group. RESULTS Incidence of GDM was found 5.9%. The risk of cesarean section (CS), pregnancy induced hypertension (PIH) and pre-term delivery was significantly high in the group A than B, i.e., OR 2.5, 95% CI 1.1-5.8, p=0.04; OR 2.6, 95% CI 1.1-6.2, p=0.03; OR 3.2, 95% CI 1.1-9.5, p=0.04; respectively. On the other hand, risks for gestational age (LGA) newborns, neonatal hypoglycemia, respiratory distress and neonatal intensive care unit (NICU) admissions were also significantly higher in the group A than B neonates, i.e., OR 3.6, 95% CI 1.1-11.9, p=0.04; OR 4.7, 95% CI 1.7-12.6, p=0.002; OR 4.2, 95% CI 1.4-12.2, p=0.009; OR 3.2, 95% CI 1.1- 9.4, p=0.04, respectively. CONCLUSIONS Pregnancy outcome was found unfavorable even with controlled GDM in comparison with high risk subjects.