Background: Gestational diabetes mellitus affects upto 5% of all pregnancies and it also serves as the most prevalent medical condition during pregnancy. Neonates born to mothers with diabetes mellitus are at risk for various immediate and long-term health complications. Early detection, effective management, and preventive strategies are crucial in mitigating the associated risks among the neonates.Hence the aim of this study was to examine the clinical outcome of neonates born to mothers with diabetes mellitus. Methodology: A prospective study was conducted in the neonatology unit of tertiary care hospital. All babies born after 32 weeks of gestation to overt and gestational diabetic mothers during the study period were included in the study.Pregnant mothers with risk factors like eclampsia, pre-eclampsia and hypothyroidism were excluded. A total of 128 mothers with diabetes were enrolled.The data collected were analysed using IBM SPSS v 21. Results: Among the 128 mothers, majority had GDM (75.7%) and almost 78% were managed by diet alone.The mean birth weight was 2.880.46 for the babies delivered. 77.3% had babies were Appropriate for age (AGA), however 19.5% were small for age (SGA) and only 3.2% were large for age (LGA).The most common outcome noted in this study is (NNH) neonatal hyperbilirubinemia (37%), followed by TTN (16%) and low birth weight (14.8%). Conclusion: To lower morbidity and death, babies born to diabetic mothers should receive adequate care.Reduced perinatal and neonatal problems can be achieved through planned pregnancies, appropriate prenatal care, stringent glycemic control in the mother, and early intervention for diabetic mothers.