Background: Infection is still an important cause of neonatal morbidity and mortality despite development of broad-spectrum antibiotics and clinical advances in life support therapy. Aim of the work: To evaluate plasma interferon gamma inducible protein 10 (IP-10) in the diagnosis and prognosis of sepsis in preterm neonates and comparison with CRP and blood culture. Subjects and methods: Samples collected from 40 preterm neonates (20 with suspected infection and 20 with no suspicion of infection) from NICU of Elsayed Galal Hospital were subjected to blood culture, CRP, CBC and measurement of plasma interferon induced protein 10 using sandwich enzyme linked immunosorbent assay (ELISA). Results: The study recruited 40 neonates divided into two groups (20 neonates each). In our study, the mean gestational age was 32.7 weeks for patient cases. The mean birth weight was 1.557 kg for confirmed cases. CRP was found to be higher in septic than non-septic group with a range from 6 to 24 mg/dl. The blood culture in our study was positive in 18 cases (11 cases had klebsiella, 2 had acinetobacter, 2 had coagulase negative staph (cons), one had staph aureus, one had pseudomonas, and one had MRSA) while others were negative. In our study, IP-10 cut-off for diagnosing sepsis was 133 ng/ml. Our data revealed that there was significantly higher plasma IP-10 levels in preterm neonates with neonatal sepsis compared to healthy neonates. Conclusion and Recommendations: The level of IP-10 increased early in cases with suspicion of infection. Plasma IP10 is a valuable laboratory test in the assessment of preterm infants aged < 1 week with suspicion of sepsis and may serve as a better diagnostic marker of sepsis than CRP