Objective: This study aims to determine the occurrence, severity and association of thrombocytopenia in neonatal sepsis and to analyze its utility as an important screening tool in neonatal sepsis. Study Design: Descriptive study Place and Duration of Study: Study was conducted in Neonatal intensive care unit (NICU) of Fauji Foundation Hospital from 1st June 2016 t0 30th May 2018. Material and Methods: We retrospectively collected data of all newborns admitted in NICU with culture proven sepsis. Association of variables like type of organisms causing sepsis with thrombocytopenia and mortality using Pearson chi-square test was assessed. P -value < 0.05 was considered significant. Results: Total newborns with positive blood culture were 70. Thrombocytopenia was observed in 65.7% of neonates. Severe thrombocytopenia was more commonly associated with gram negative organisms (80.4%) as compared to gram positive organisms (37.5%) with p-value of 0.001. Significant mortality was contributed by gram negative organisms (87%). p- value of 0.03. Conclusion: Thrombocytopenia is an early predictor of septicemia. Sepsis caused by gram negative organisms is more commonly associated with thrombocytopenia and with high risk of mortality.