Background: Neonatal sepsis remains one of the leading causes of morbidity and mortality both among term and preterm infants. Sepsis and meningitis are responsible for most of these deaths. According to WHO estimates, there are about 5 million neonatal deaths a year. Jaundice and hepatic dysfunction frequently accompany a variety of bacterial infections. This study was aimed to evaluate bilirubin fractions and liver function tests in septic and non septic neonates with hyperbilirubinemia. Materials & Methods:A total of 41 neonates, their age ranged from (1-28 days), mean age sepsis cases 4.29±5.34 and mean age in non sepsis 2.27±4.44. The patients admitted to neonatology unit for the management of hyperbilirubinemia were included in this study. Out of 41, 20 babies having sepsis (17 were males & 3 were females) and 21 (15 were males & 6 were females) were non sepsis. All study subjects were studied for the serum bilirubin fractions and other liver function tests by using vitros dry chemistry analyzer. Results: In the present study, delta bilirubin (0.955 ±0.546) and conjugated bilirubin (1.17±2.10) levels are significantly increased in sepsis cases when compared to non sepsis controls. Conclusion: In conclusion, conjugated bilirubin and delta bilirubin were significantly increased in neonates suffering from sepsis with hyperbilirubinemia. By studying individual fractions of bilirubin, especially unconjugated bilirubin, conjugated bilirubin and delta bilirubin (not as direct and indirect bilirubin) will help in early diagnosis of sepsis and thus may help in better management of the sepsis neonates.