Background: The symptoms of neonatal sepsis are often hard to identify, which can lead to misdiagnosis. Because of the shortcomings of relying solely on blood cultures for diagnosis, surrogate biomarkers of sepsis are frequently employed. Progranulin is a secreted protein that acts as an anti-inflammatory agent and has a protective effect in sepsis and endotoxic shock. Objectives: Evaluating the diagnostic value of serum progranulin in neonatal sepsis could potentially lead to earlier detection and improved prognosis for affected neonates.   Patients and methods: The study included 45 neonatal sepsis patients and 45 healthy controls of the same age and gender. Participants in the study underwent comprehensive history taking, thorough clinical examination, and tests involving CBC, blood culture, C-reactive protein, and serum progranulin measurement using an ELISA kit. Results: Serum progranulin levels were significantly greater in cases with neonatal sepsis contrasted with the control group. There was a significant +ve correlation among serum progranulin & CRP levels. Furthermore, serum progranulin was the most effective laboratory parameter in diagnosing neonatal sepsis, with the highest area under the ROC curve  following CRP. No link was found between progranulin levels and the outcome of Sepsis in neonates. The most prevalent risk factors for sepsis were premature rupture of membranes and prematurity. In terms of prevalence among gram-negative organisms, Klebsiella pneumoniae was found to be the most common., MRSA and CoNS were identified as the most frequently isolated gram-positive organisms. Conclusions: Progranulin levels in the serum could serve as a promising diagnostic biomarker for neonatal sepsis.