In neonates the incidence of spontaneous pneumothorax has been detailed to be all 0.05-1% all live births. Although in literature, it has been stated that, spontaneous pneumothorax may run in families and is autosomal dominant in inheritance, clear cut evidence is lacking. There has also been a correlation between spontaneous pneumothorax and anomalies of the genital tract. Strong resuscitation, vigorous aspiration of amniotic fluid stained with meconium, endotracheal intubation and respiratory distress syndrome have been linked with the occurrence of pneumothorax. However, the occurrence of a spontaneous pneumothorax, in the absence of the above - mentioned risk factors, is peculiar and rare. Here, we present a case of spontaneous pneumothorax in a term neonate, presenting with respiratory distress.