Background: Neonatal hepatitis (NH) represents a nonspecific reaction of the liver to various insults and characterized histologically by extensive giant cell transformation of hepatocytes. NH represents approximately 40% of all cases of cholestasis in infants. Aim of work: To assess the outcome and determine the possible clinical and laboratory prognostic factors in cases of NH among Egyptian infants. Patients and methods: This study was carried out at the Hepatology Unit, Cairo University Children’s Hospital, Cairo, Egypt. All cases histopathologically proved to have NH over a period of 3 years (1/2009-12/2011) were included. Data retrieved from the files included detailed history, general, abdominal examination, growth parameters and laboratory, radiological as well as histopathological investigations at presentation and throughout 1 year of follow up. Results: The study included 148 infants, 104 males (70 %) with history of consanguinity in 65.5%. Cases below 3rd percentile for weight, length and head circumference were 28%, 22.9% and 30.4% respectively. They presented with cholestasis with median age of onset of 6 days. Bleeding and/or bleeding tendency were present in 24.3%. Hepatomegaly and splenomegaly presented in 62.8% and 31.8% respectively. Liver architecture was preserved in 77% of cases while portal fibrosis presented in 27%. INH was the diagnosis of 66.9% of cases. The outcome was resolution of 48.5% of cases with a mean age of resolution of 8 + 4.9 months, partial resolution in 23.3% and unresolved course in 28.2% of cases. Conclusion: Neonatal hepatitis is a common cause of cholestatic cases presented to our unit. NH has a good prognosis with complete resolution in about half of cases. Good prognostic factors include earlier age of onset, higher GGT levels and preserved liver architecture in liver biopsy.