Background: A medication error is a failure in the treatment process that leads to potential harm to the patient. Objectives: The study aimed to detect common prescribing and dispensing medication errors and frequency of medication errors reported by healthcare providers (HCP). Methodology: This observational prospective study was conducted for 10 months from January 2019 to October 2019 in an inpatient setting of a tertiary care hospital in Mangalore using Incident reporting form. The severity levels of medication errors have been analyzed by using the National Coordinating Council for Medication Error Reporting and Prevention (NCCMERP) proposed index for categorizing medication errors. Results: On evaluating the medication errors, 30.18% were prescribing errors, 22.64% were dispensing errors. Majority of the errors were reported by Clinical pharmacist (62.6%), followed by Nurses (24.52%).The drugs acting on CVS were the most common class of drugs in which errors occurred (27 %). Most of the errors in our study resulted in (Error No Harm) 86.3% (category B, C and D), (No Error) 13.5% (category A), 1.2 % (category E, F, G, H) resulted in (Error Harm). No incidence of Error Death was reported. Conclusion: The incidence of medication errors was significantly high and it is essential to establish medication error reporting system and the educational programme for drug prescribers and nurses concerning drug therapy are urgently needed to avoid medication errors and to improve patient safety by clinical pharmacists.