This retrospective study was performed at the Pediatric Institute of Kuala Lumpur General Hospital. A total of 147 subjects with radiologically confirmed pneumonia were recruited in the study. Data collected included patient demographics, length of stay (LOS), clinical outcomes and all the components of direct medical cost. Bottom up costing method was used for cost evaluation from hospital perspectives. The clinical outcome that considered as a measure of effectiveness was the probability of treatment success which is the percentage of patients discharged with complete cure (symptoms free). Cost effectiveness and incremental cost effectiveness ratios were calculated. The two antibiotics considered for the analysis were the cefuroxime and the C-penicillin. For the cefuroxime group, the median of the total management cost is MYR -Malaysian Ringgit 838.90 (IQR. 787.90, 1834.57), for the C-penicillin group the median is MYR 1153.85 (IQR 791.61, 1523.90). Cefuroxime use resulted in better patient outcome (84% versus 73% treatment success rate) and at lower cost. The cost adequacy proportion for cefuroxime and C-penicillin are 998.70, and 1580.60 individually. The ICER (gradual savvy proportion) is equivalent to – 2,863, less estimation of ICER demonstrate sparing impacts. The utilization of Cefuroxime for the treatment of youngsters hospitalized with bacterial pneumonia is clinically more viable and gives a monetary favorable position contrasted with Crystalline Penicillin G. Community-acquired pneumonias the most widely recognized reason for death in youngsters around the world, representing 15% of passings in kids more youthful than 5 years old.About 1 of every 500 kids will be hospitalized for CAP, which makes a generous financial weight. Top is in this manner essential to analyze and properly treat. While viral reasons for CAP are generally normal, separating viral versus bacterial etiologies can be troublesome. This leads to excessive use of antimicrobial medications or susceptibility to feeling a pressure to prescribe. Overall, in the United States, 11.4 million antimicrobial prescriptions for pediatric respiratory tract infections per year are avoidable. Besides, wide range yet less successful antimicrobial specialists are regularly recommended when pharmacokinetically great restricted range operators are accessible. Ostensibly, the untoward impacts of overtreatment of CAP in those in whom treatment is ridiculous aggravates the dismalness of this ailment procedure. Due to mounting information on antimicrobial symptoms, opposition, and microbiome impacts, professionals must stick to the standards of reasonable use when rewarding CAP.