The Composite Index of Anthropometric Failure (CIAF) is an overall indicator of undernutrition composed of stunting, underweight and wasting. A cross sectional study was conducted in an urban area (Haldia) of Purba Medinipur District, West Bengal, India, to assess the effect of socio-economic factors on CIAF among 621 (307 boys; 314 girls) children aged 3-12 years. Body height (cm) and weight (kg) were recorded using standard procedure. Selected socio-economic and demographic information were recorded using pre-structured schedule. The NCHS reference values were used to calculate Z (< -2SD) scores for the three conventional indices namely underweight, stunting and wasting, and finally, to derive CIAF. Data were analyzed using chi-square test and binary as well as stepwise multiple logistic regression analysis. The CIAF showed a high prevalence of 47.66%. Sex specific prevalence was higher among girls. Low monthly per capita income (Odds ratio, OR = 2.1; p< 0.001) and households having two or less number of rooms (OR = 1.55, p < 0.001) were independently associated with higher risk of anthropometric failure (AF). Factors having a direct impact on earnings which provide basic infrastructure for a healthy livelihood seemed to be the major predictor of AF among children.