Background: Birth of a newborn that requires admission to NICU is stressful and traumatic to the parents. Objective: The present study aimed to determine the patterns of distress in mothers of neonates admitted in NICU and to find its effects on infant–parent relationship. Materials and methods: An interview based cross–sectional study was done in mothers of neonates admitted in Tier 3 NICU for a period of more than 48 hours for a total period of one year. Questions were formulated and levels of distress measured on correlates of depression and anxiety. Scales used were: PSS–NICU, EPDS and GAD–7. ANOVA and regression analysis was used for statistical calculations. Results: Findings of the study revealed physical appearance of the neonate as well as the NICU environment as major stress inducers followed by neonatal characteristics, socio–demography of mothers and family support. Most mothers had anxiety traits whereas 19.9% had depressive traits. Conclusion: Mothers exhibit high levels of stress during their neonate’s hospitalisation that is exhibited as both anxiety and depression further hampering adequate care and establishment of infant–mother bond. Early identification of anxiety level has implications for support of mothers during hospitalisation of their newborns.