The present study was conducted to identify the risk factors, antibiotic susceptibility pattern and outcome of neonatal Klebsiella pneumoniae sepsis. All admitted neonates with clinically suspected sepsis underwent blood culture. Babies with positve blood culture were included in the study. Detailed antenatal, natal and neonatal treatment histories including the outcome were noted. Among 120 clinically suspected cases of neonatal sepsis, 50 (41.6%) had a positive blood culture, out of which 33 (27.5%) were due to Klebsiella pneumoniae. Neonates with birth weight ≤ 2.5 Kg, preterm neonates, inborn babies and neonates with early-onset sepsis were found to have higher risk for infection by Klebsiella pneumoniae based on univariate analysis. Regression analysis identified neonates with birth weight ≤ 2.5 Kg and inborn babies to be at higher risk of developing Klebsiella infection. All Klebsiella pneumoniae isolates were sensitive to meropenam.