We conducted this study to assess the neonatal morbidity and care-seeking behavior amongst slum and non-slum dwellers at Lucknow. One hundred and fifty neonates were recruited within 48 hours of birth from an urban Reproductive and Child Health center and followed up at 6 weeks +/- 15 days at home. Twenty five (16.6%) were lost to follow-up. Among those followed up, 46.4% (58/125) developed one or more morbidity; 26% (15/58) of these did not receive qualified medical care. Neonatal morbidity was 56.8% (33/58) among slum dwellers and 37.3% (25/67) among non-slum dwellers (absolute difference=19.5%, 95% CI=3.3 to 34.7; P=0.04). Severe neonatal illnesses were also significantly higher among neonates from slums as compared to those from non-slum areas (OR=4.50, 95% CI=1.28 to 16.38, P=0.007). Male gender was associated with any care-seeking (OR=1.24, 95% CI =1.24 to 91.99; P=0.03) and was more likely to be seen by a qualified provider (OR=3.8, 95% CI=1.05 to 13.94; P=0.04). Since nearly half of the neonates had morbidity and more than a quarter of them did not receive qualified medical care, there is a need to introduce Community Integrated Management of Neonatal and Childhood Illnesses (IMNCI) program here, emphasizing on the importance of qualified medical care for ill neonates, including females.