Anemia is a common condition associated with thyroid diseases but the causal relationship between these disorders remains unclear. Thyroid hormones play a crucial role in erythropoiesis by stimulating the expression of the erythropoietin gene and erythropoietin production. An excess of thyroid hormones is also linked to altered iron metabolism or oxidative stress. The significance of the study lies in understanding the relationship between thyroid function and anemia, correlation of thyroid hormone levels and anemia and its improvement on correction of the hormonal imbalance. To evaluate the influence of thyroid hormones on hemoglobin and its improvement on correction of the hormonal imbalance. 150 patients of either sex diagnosed as hypothyroid/hyperthyroid and anemic as per WHO guidelines were selected between September 2019 and October 2023. They were the treated with appropriate doses of Levothyroxine/carbimazole for hypothyroidism/hyperthyroidism respectively. Follow-up assessments done at 1 month and 3 months, with hemoglobin, T3, T4, TSH levels and analyzed. We observed that participants with either hypothyroidism or hyperthyroidism exhibited lower hemoglobin concentrations regardless of gender. Following correction of thyroid dysfunction there was significant improvement in the hemoglobin values and improvement of non-specific complaints at the end of the 3 months follow up. Our study showed that thyroid dysfunction affects hemoglobin and it is essential to know its association for better management of both conditions. The correction of thyroid dysfunction also improved the hemoglobin status. Hence, routine follow-up of patients with thyroid disorders should involve complete blood count assessments, and patients diagnosed with anemia screened for thyroid disorders.