There is a high risk of severe varicella infection in the neonate when the mother develops a rash around the time of delivery. Current guidelines recommend separation of mother–baby dyad and passive immunization to prevent severe infection in such cases. We report a case of severe varicella in a neonate whose mother developed primary varicella infection two days prior to delivery. The neonate had a fatal outcome despite physical separation from mother and passive immunization in the immediate postnatal period.