Background: Seroma is one of the most common complications of conventional modified radical mastectomy (MRM) with axillary clearance in the management of breast cancer causing subsequent associated morbidities (Infection, Flap necrosis, Prolonged drainage and Delayed healing). The rate of seroma formation has been reported to be affected by the type of surgical procedure. Objective: To evaluate axillary exclusion technique for reducing seroma formation after modified radical mastectomy in the management of breast cancer. Patients and Methods: 40 female patients with breast cancer were recruited and divided randomly into 2 groups: The first group was managed by MRM and the other group was managed by MRM with axillary exclusion technique. Operative time, drainage volume and, seroma formation rate and wound infection were compared for both techniques. Results: Operative time was significantly longer in the group managed by MRM with axillary exclusion than in group managed by MRM only (85±8 minutes versus 59.5± 3.5 minutes respectively). No significant difference in the amount of blood loss between the 2 groups. Drainage volume was significantly less in the group managed by axillary exclusion technique than in the group managed by MRM only (300.85±29.4 ml versus 950.15±45.21 ml respectively). Only one patient suffered from seroma formation in the group managed by axillary exclusion in contrast to 7 patients in the group managed by MRM only (P value= 0.048). Conclusion: MRM with axillary exclusion technique in the management of breast cancer resulted in significant reduction in the drainage volume post operatively and thus the rate of seroma formation.