Introduction: Brainstem Auditory Evoked Potentials (BAEP) play a crucial role in pediatric audiology, particularly for evaluating auditory function in children when behavioral testing is not possible. It serves as a valuable tool for assessing the auditory pathways of the brainstem. Methods: This study aims to compare latencies of wave I and wave III through Brainstem Auditory Evoked Potential (BAEP) in preterm babies (32 to 36 weeks) against age specific normal responses. The goal is to identify potential hearing impairment indicated by any increased BAEP latencies in wave I and wave III. Results: The study involved 50 preterm newborns divided into three groups based on gestational age: Group A (32 weeks, n=12), Group B (34 weeks, n=18), and Group C (36 weeks, n=20). The infants underwent BAEP testing using the RMS EMG EP MARK-II machine at the Neurophysiology Unit of the Department of Physiology, Gandhi Medical College, Bhopal. Data interpretation involved comparing the obtained values to established normal values. Conclusion: The study observed increased absolute peak latencies of wave I and III in preterm babies compared to normal term infants, suggesting defects in peripheral transmission and improper myelination of the BAEP pathway. When comparing between groups, significant differences were found in the absolute latencies of waves I and III in both ears between group 1 and groups 2 and 3. Additionally, significant differences were noted in the latency of waves I and III in the right ear between group 2 and group 3.