BACKGROUND Management of infective non-union in long bone fractures is a demanding task. Infected non-union has been defined as a state of failure of union and persistence of infection at fracture site for 9 months. Infective non-union of long bone fractures are associated with problems like infection-osteomyelitis, multiple sinuses. shortening, limb length deformity and contractures. Aim-This study has been carried out to compare the functional outcome of the management of infected non-union of long bone fractures by Masquelet technique in patients with less than 4 cm bone loss. MATERIALS AND METHODS It was a prospective observational study. 40 patients who had infected non-unions (22 male and 18 female) admitted in Government General Hospital, Ananthapuramu, between May 2015 and June 2017 were included in this study. All patients were in age group of 20 to 50 yrs., and functional outcome was assessed by haematological investigations, time taken for reduction of infection, time for clinical union and average time taken for mobilisation. RESULTS Total 40 patients were treated, among them 22 were male and 18 were female. Average time taken for infection to subside was 7.63 weeks for males and 7.3 weeks for females. Average time taken for ambulation was 6.2 weeks for males and 8 weeks for females and average time taken for union clinically was 34.36 weeks for males and 37.2 weeks for females. Among the 40 patients 3 patients had non-union, 3 patients had re-infection, 3 patients had limb shortening and 2 patients had limp. CONCLUSION Modified Masquelet technique is a viable option for treatment of infected non-union of long bones. It helps in complete control of infection by slow eluting of antibiotic from antibiotic cement and rigid fixation helps in achieving early mobilisation and early clinical union compared to other modalities of treatment.