SARS-CoV-2 infection in children accounts for about 1-8% of cases world-wide, most of them asymptomatic or mildly symptomatic. Neonatal infection is rare and usually asymptomatic. Since April 2020, severe manifestations were seen in children in Europe and North America, presenting as Kawasaki disease-like illness involving multiple organs. The Centers for Disease Control and Prevention termed this multisystem inflammatory syndrome in children (MIS-C) and developed a case definition. The World Health Organization developed a similar case definition with slight modifications. The appropriateness of this definition for neonatal scenarios is debatable. Anecdotal reports reveal that the second wave of SARS-CoV-2 in the Indian context has affected neonates with more severity and a wide spectrum of presentations. Neurological manifestations presenting as seizures and encephalopathy, cardiac manifestations with shock, coronary artery dilatation, arrhythmias, disseminated intravascular coagulation, renal problems and death are seen. [1][2][3][4] We report a case of SARS-CoV-2 infection in a 7-day-old term neonate with possible MIS-C, presenting with features of encephalitis.