Abstract Background: With increasing number of COVID infections, more and more pregnant women were affected and hence more vertical transmissions to newborns were reported. There was scarcity of dedicated studies in newborns related to clinical profile and outcome in COVID. This study was aimed at estimating the prevalence of COVID-19 positive babies born of COVID-19 infected Mothers and to describe the early clinical outcome in their COVID positive babies. Methods: The study was done as a cross sectional study conducted at a tertiary care dedicated COVID treatment Centre in a sample of 388 babies of COVID positive mothers. Along with the prevalence of COVID positive babies, the early clinical outcome at 48 hours after birth was also evaluated. Results: A total of 388 COVID positive mothers were studied and among them 85 babies were found to be COVID positive. The COVID positivity rate was 21.9% (95% CI 17.83 -25.97). Out of 85 babies 34(40%) babies were male and 51(60) babies were female. The proportion of LBW was 13(15.2%), proportion of preterm babies was 13 (15.3%) and only 19(22%) babies required NICU admission. Among the maternal variables of COVID positive babies, 38 (44.7%) were primi gravida and 46(54%) mothers had vaginal delivery. Regarding the COVID clinical status, 70(82.4%) mothers were asymptomatic and 15(17.6%) were symptomatic. After the subgroup analysis, 22(25.8%) babies were symptomatic and 63(74.1%) babies were asymptomatic. Out of 22 symptomatic babies 13(59.1%) were male and 9(40.9%) female babies (P value 0.03). The mean birth weight in symptomatic and asymptomatic babies was 2.96 kg and 2.98kg respectively (P value 0.687). Conclusion: The newborn COVID positivity rate was found to be around 22% and majority had good early clinical outcome. The findings from this study helped to assess the burden of COVID pandemic in newborn babies and would help in the higher level of analytical research.