Abstract: In this study determination of arsenic (As) contamination in the drinking water and urine of children along with its effect on their health status and intellectual functioning was assessed. The study was carried out in order to determine any correlation between intake of arsenic and intellectual functioning level of the children. Raven Standard Progressive Matrices (RPM) was administered on children of (8-15) years of age to assess their intellectual functioning and their health status was checked by measuring their height and weight. Water and urine sample were studied in both experimental and control group. In experimental area Arsenic level was above the World Health Organization (WHO) permissible value which was compared with control area having arsenic level below WHO permissible value in both water and urine. An average 45% of arsenic level in drinking water samples was above WHO permissible value (10 μg/L). Considering urinary arsenic as a biomarker of exposure to arsenic through drinking water, it was found that an average of 50% of children of the experimental group were found to have arsenic in their urine ranging from a concentration of 0.01-0.0119 μg/L. Conclusively, this study showed that the intellectual functioning level of children drinking arsenic contaminated water was significantly lower as compared to those, drinking arsenic-free water.