Neonatal jaundice is characterized by elevated bilirubin levels in newborns. It can be physiological due to immature liver function or pathological due to conditions that increase bilirubin production or decrease conjugation/excretion. Left untreated, extreme jaundice can cause acute or chronic bilirubin encephalopathy. Management involves monitoring for complications and preventing high bilirubin levels through frequent feeding to interrupt enterohepatic circulation. All newborns, especially those with risk factors, should be screened for jaundice before discharge and receive close follow up.