A hospital based cross-sectional study was conducted in department of biochemistry, Tribhuvan University Teaching Hospital (TUTH), Nepal. We showed the prevalence of anemia in chronic kidney disease (CKD) and association between anemia and CKD. Total of 163 predialysis patients in all stages of CKD and 163 of non-CKD healthy controls were enrolled. CKD was defined and classified as per national kidney foundation guidelines. We analyzed biochemical profile on BT 2000 Plus biotechnica instruments - clinical chemistry analyzer and hematological profile on xs-1000i. Descriptive statistics and testing of hypothesis were used for the analysis using SPSS 16 software. The incidence of anemia in stage I, Stage II, Stage III, stage IV, stage V and all CKD were found to be 17.64%, 27.78%, 48.38%, 74.19%, 80% and 47.85% respectively. Hemoglobin level was significantly lower in CKD cases than non-CKD controls (P-value <0.001). 47.8% of CKD cases and 13.5% of non-CKD controls had anemia (Odds ratio 5.88, P-value <0.001). 41.3% of male CKD cases and 8.7% of male non-CKD controls had anemia (Odds ratio 7.39, P-value <0.001). 56.34% of female CKD cases and 13.5% of female non-CKD controls had anemia (Odds ratio 5.25, P-value <0.001). Anemia was seen in all stages of CKD. Prevalence of anemia increased as kidney function decreased. A strong association was found between an anemia and CKD.