Background: Distal radius fractures are among the most common fractures encountered in orthopaedic practice. Various surgical techniques have been used for the management of unstable fractures, including volar locking plate fixation and external fixation. The choice of optimal treatment remains a subject of debate. Aim: To compare the functional and radiological outcomes of distal radius fractures treated with volar locking plate fixation and external fixation. Materials and Methods: This prospective comparative study was conducted in the Department of Orthopaedics at Smt. NHL Municipal Medical College, Ahmedabad, Gujarat, India, from 2023 to 2025. A total of 60 patients with distal radius fractures were included and divided into two groups: Group A (30 patients) treated with volar locking plate fixation and Group B (30 patients) treated with external fixation. Patients were followed up at regular intervals, and functional outcomes were assessed using the Disabilities of the Arm, Shoulder and Hand (DASH) score along with evaluation of wrist range of motion and radiological parameters. Results: The majority of patients were in the 41–50 year age group, with males being more commonly affected. The most common mechanism of injury was a fall on an outstretched hand. Patients treated with volar locking plate fixation showed better wrist range of motion and superior functional outcomes compared to the external fixation group. Complications such as pin-tract infection and wrist stiffness were more frequently observed in patients treated with external fixation. Conclusion: Volar locking plate fixation provides better functional outcomes, improved wrist mobility, and fewer complications compared to external fixation in the treatment of distal radius fractures.