Does your script give you any debugging information when is exits? I suspect it is as simple as you are not handling the error conditions properly, as described in Net::Telnet (look for errmode). You could probably fix this simply with a next: 

 if ($telnet_err){                
            print "Unable to telnet to $host machine\n";
            next;
 }

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In reply to Re: Telnet Script exits if any of the machine is un-accessible by kennethk
in thread Telnet Script exits if any of the machine is un-accessible by kumarnaveen

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