ABSTRACT.The case records of all neonates admitted to the neonatal unit at Aga Khan University Hospital (Karachi) in a 30 month period (Nov. 86April 89) were analysed. Of 60 neonates with confirmed sepsis, 33 (55%) had non‐nosocomial infection (NNC) whereas 27 (45 %) had nosocomial sepsis (NC). The most common organisms causing early‐onset NNC sepsis were Klebsiella species (53%) andEscherichia coli(10%), whereas the organisms causing late‐onset NNC sepsis includedSalmonella parathypi(21%), Group A Streptococcus (21%),Escherichia coli(14%) and Pseudomonas species (14%). Klebsiella was the most common organism causing NC sepsis, others beingStaphylococcus aureus(15%) and Serratia species (15%). The mortality in NC sepsis, early‐onset and late onset NNC sepsis was 44%, 26% and 43%, respectively. Risk factors associated with NNC sepsis included low birthweight, prematurity and prolonged and complicated deliveries. There was a high incidence of drug resistance to ampicillin and gentamicin among gram‐negative organisms causing sepsis (m