Congenital giant hairy nevi have an incidence of 1 in 20,000 to 1 in 500,000 newborns, with a prevalence that is roughly equal between genders and appears across all races. Size classification varies, with 'giant' referring to lesions significantly larger than typical congenital nevi, and there is a concern about the potential for malignant transformation, particularly in larger lesions. Management depends on factors such as size and location, with treatment options ranging from monitoring to surgical interventions.