Background: Maternal gestational diabetes is associated with an inflammatory environment that may contribute to fetal and placental inflammatory profile changes. Few studies investigated the effect of maternal gestational diabetes on neonatal innate immunity. Objectives: Our objective was to study neutrophil number and function in neonates born to mothers with gestational diabetes. Methods: Neutrophil number (complete blood count) and functions [CD11b, CD62L and Dihydrorhodamine 123 (DHR) by flow cytometry] were assessed in the cord blood of 30 full term neonates born to gestational diabetic mothers on insulin during pregnancy and another 15 born to healthy mothers as controls. Results: The mean total leucocytic and absolute neutrophil count were significantly lower in neonates of diabetics than in normal neonates (13.55± 2.51 and 17.89± 3.66 p> 0.001; 9.01±1.59 and 14.18±3.44 p>0.001 respectively). Mean CD11b, CD62L and DHR were lower among neonates of diabetic mothers than normal neonates (82.48± 8.09 & 87.85± 4.87 p < 0.05; 8.63±4.41 and 24.98±10.47 p <0.001; 68.71± 10.24 and 79.57±8.64 p< 0.001 respectively). Unlike the control neonates, neonates of gestational diabetic mothers had positive correlation between the functional neutrophil parameters (r0.39 p<0.05). Conclusion: Gestational diabetes affects cord blood neutrophil count and functions leading to high susceptibility to infection.