Objective: To study the incidence of neonatal jaundice requiring phototherapy in babies exposed to maternal oxytocin for induction of labor. Materials and Methods: This study was conducted in the neonatal unit of a tertiary care center in Rajarajeswari medical college and hospital, Bangalore, over a period of 1 year. After exclusion, 456 babies were divided in two groups, Group A (babies exposed to maternal oxytocin for induction of labor) or Group B (babies born of spontaneous labor). Babies were observed on day 3 for clinical jaundice. Results: Incidence of neonatal jaundice in Group A was 61.3% and in Group B was 43.4%. Conclusion: Our study shows that maternal oxytocin used for induction of labor increase the incidence of neonatal jaundice, and it is logical to prevent hyperbilirubinemia by reducing the dose of oxytocin.