Neonatal mortality is the primary cause of under-five mortality in Ethiopia. Though much is done in the country to reduce neonatal death, the mortality rate is still 31 per 1000 live births. Prematurity, infection and birth asphyxia are the leading causes of neonatal death. Neonatal care is advancing in the country with the practice of advanced level life support in the delivery room. This incorporates delivery room continuous positive airway pressure and plastic wrapping for preterm neonates. In the NICU there is advancement of neonatal care with high quality CPAP, surfactant and mechanical ventilation. Kangaroo mother care is also widely practiced in the country, in a drive to to reduce mortality and improve outcome of low birth weight and preterm neonates.