Neonatal jaundice Jaundice is the medical word used to describe a yellowing of the skin and white parts of the eyes (sclera). Neonatal jaundice is a very common condition – around 60 per cent of babies born at term and 80 per cent of babies born early (prematurely) develop neonatal jaundice.It usually develops on day two and three of life and generally fades away by the end of the first week of life. In the majority of cases, jaundice is harmless and fades without treatment. A very small number of babies can develop more significant jaundice that requires treatment. Treatment is needed because extremely high levels of jaundice can damage the brain and cause problems.