Objective: To determine the feasibility and short term outcome of laparoscopic rectal cancer surgery in a third world country like Pakistan. Methodology: This prospective study was conducted at Department of Surgery from January 2009 to December 2011.All the operable and fit cases of rectal cancer who consented for laparoscopic surgery were included in study. The exclusion criteria were locally advanced disease, distant metastases and patients with comorbids. Results: Total no of cases were 31. Age ranged from 20 to 70 years. There were 21 males and 10 females. Abdominoperineal resection (APR) was performed in 21 cases and 10 cases had anterior resection (AR). The diverting ileostomy was made in 02 cases of anterior resection. The mean anastomosis time was 241.71+6.44 (200 to 300 minutes). Three cases (02 APR and 01 AR group) were converted to open approach. The postoperative recovery was uneventful and patients were started oral fluids on second postoperative day. Injectable analgesia requirement was only 2-3 doses. The median length of hospital stay was 9.45+1.6 (3 to 14 days). The complications were anastomosis leak in one case, and anastomosis stricture in one case of AR. Colostomy complications were in 6 cases out of 21 cases of APR group. Urinary and sexual problems were found in three cases of APR.There was no peroperative or 30 days postoperative mortality. Conclusion: The laparoscopic resection of rectal cancer is safe, feasible with early postoperative recovery, better cosmesis with minimal postoperative complications and zero mortality.