Background: Neonatal Septicaemia is continued to be the major causes of the mortality and morbidity in newborns, particularly in premature infants. The signs and symptoms of neonatal sepsis are nonspecific. Objectives: To analyze the causative organism and its outcome in neonatal sepsis. Material and Method:A prospective study performed at the Department of paediatrics, Annai Gandhi memorial government hospital, Trichy, over a period of one year from November 2010 to October 2011. Totally, 250 subjects were enrolled in the study. Result: Out of the 250 neonates 84% of infections were caused by gram negative organisms and 16% were gram positive organisms. Conclusion: Based on the above analysis, a positive blood culture and the antibiotic susceptibility testing of the isolates are the best guide in choosing the appropriate antimicrobial therapy in treating neonatal septicaemia.