Background: Loss of teeth eventually leads to compromised esthetics giving functional disability and incomplete smile appearance, which at last affects the life quality of patients.The present study was conducted to assess marginal bone loss and implant failure rate in smokers and non-smokers. Materials & Methods:90 patients of both genders who received dental implant in last 2 yearswere divided into 2 groups. Group I with smokers and group II with non-smokers. Smokers were patients who smoked more than 10 cigarettes per day for 2 years at least. Following the implant placement, the recall was scheduled at 3, 6, and 12 months after implant loading. Marginal bone loss and dental implant failure rate was recorded in both groups. Results: Group I comprised of 35 males and 10 females and group II had 25 males and 20 females. Implants were placed in maxillary anterior region in 22%, maxillary posterior region in 28%, mandibular anterior region in 15% and mandibular posterior region in 35%. The mean marginal bone loss (mm) in maxillary anterior region at 3 months in group I was 2.14, at 6months was 2.40 and at 12 months was 2.71 and in group II was 1.18, 1.32and 1.46, in maxillary posterior region was 2.44, 2.72 and 3.20 in group I and in group II was 1.24, 1.42 and 1.68, in mandibular anteriorregion in group I was 2.61, 1.81 and 3.26 and in group II was 1.32, 1.82 and 2.04, in mandibular posterior region in group I was 2.72, 2.64 and 3.22 and in group II was 1.58, 2.05 and 2.26 respectively. There was failure seen in 12% in group I and 4% in group II. The difference was significant (P< 0.05). Conclusion: Maximum dental implant failures was seen among smokers than non- smokers. Similarly, marginal bone loss is also higher in smokers as compared to non-smokers.