OBJECTIVES: To find out the average direct hospitalization cost and length of hospital stay for patients infected with Carbapenem-resistant Klebsiella pneumonia (CRKp) and compare it with that of patients infected with Carbapenem-sensitive Klebsiella pneumonia (CSKp).  METHODS: A cross sectional study was carried out from January-December 2014 and the data for hospitalization cost was collected for the patients with CRKp and CSKp infections from the medicine ICU for 72 patients admitted to the hospital. The data was analyzed for the site of infection, length of stay and average direct hospitalization cost which was then compared between the two groups.  RESULTS: During the study period, 101 patients were diagnosed with Klebsiella pneumoniae infection. 61.79% of the infections were respiratory, 24.52% urinary tract- related, 13.2% systemic and 0.47% skin and soft tissue-related. The mean age of the study population was 51.7 ± 15.7 years. The median length of stay for CRKp was 12 (11; 23) days as compared to 8 (5.2; 13.2) days in CSKp patients . The median direct hospitalization cost was calculated to be INR 43,274 (24,898; 16,0315)  in case of CRKp versus INR 23,452 (12,489; 47,349) in CSKp patients. CONCLUSIONS: We observed that the average cost of overall therapy and the average no. of hospitalization days was higher in CRKp group compared to CSKp group. Antibiotic resistance is a growing phenomenon and the resistance to Carbapenems can lead to increased burden of morbidity and treatment cost for patients.