Neonatal sepsis is a major cause of neonatal and morbidity, Sepsisgreatly affects the coagulation system of the affected neonates. We measured protein c, protein s and antithrombin III levels in thirty septic neonates and thirty normalneonates served as control group. The study revealed the effect of decreased levels of the physiologic inhibition system of coagulation (PISC) including protein c, protein s and antithrombin III on further development of thromboembolic complications in Septic neonates, as 30% of the studied cases developed disseminated intravascular coagulation (DIC). Protein C concentrates can act as adjuvant therapy to antibiotics.