Background: Assessment of maintenance of the tissue oxygen supply adequacy should be considered as the primary objective in neonatal intensive care unit (NICU). Objective: The aim of this study was to evaluate the value of perfusion index for predicting early discharge of newborns from NICU. Patients and methods: Our study was conducted on 248 neonates. We measured the perfusion index (PI) for Full term neonates aged ≥37 weeks, appropriate for gestational age with APGAR score >7 at 5 minutes. Newborns included in the study were divided into two groups: Group (1): included neonates admitted to NICU for whom PI was measured daily until discharge or death. Group (2): included neonates discharged to home for whom PI measured at birth. Results: Among admitted survived cases the median pre-ductal PI was 0.9 and post-ductal PI was 0.8 while among admitted non-survived cases the median pre-ductal PI was 0.5 and post-ductal PI 0.4. Pre and post-ductal PI were significantly increased among survivors )0.94±0.35, 0.85±0.35( than non survivors )0.56±0.23, 0.48±0.21( respectively )P<0.001(. Post-ductal PI was significantly increased among survivors than non-survivor patients (P<0.001), Also, SpO2 was significantly increased among survivors than non survivors (P<0.001). PI levels were significantly lower in the patients who needed support with inotropes than those who don't need (P<0.001).Perfusion index was significantly decreased among admitted patients (0.84±0.37) than discharged patients 2.24±0.49 (P<0.001).Perfusion index was significantly decreased among non survivors 0.68±0.36 than survivors 0.89±0.34 (P=0.003). Conclusion: It could be concluded that the perfusion index measured in the first day of life plays a role in the prediction of early discharge of neonates that have good values of PI. On the other hand, it predicts the admission of neonates that have lower values of PI. Follow-up of PI may help the clinician to identify highrisk neonate who need closer monitoring and more aggressive treatment.