Background: The purpose of this study was to know the effect of maternal diabetes on the hematological parameters of their offspring. Methods: This study was carried on 60 neonates, their gestational age ranged from 32 to 41 weeks. *Neonates have been divided into the following three groups: Group I: Control group. (n = 20). Group II: Infants of diabetic mothers (IDM) whose mothers had pre-gestational diabetes (n = 20). Group IIA - Admission in neonatal intensive care unit (NICU), Group IIB - Discharge from NICU, Group III: IDMs whose mothers had gestational diabetes mellitus (n = 20), Group IIIA - Admission in NICU, Group IIIB - Discharge from NICU. Results: Segmented neutrophil count, platelet (PLT) count, blood indices (mean corpuscular volume [MCV], mean corpuscular hemoglobin [MCH], MCH concentration [MCHC]) decreased in Group IIA and IIIA when compared to control group. Red cell distribution width (RDW), reticulocyte count, staff polymorphonuclear leukocyte (PMNL) increased in Group IIA and Group IIIA when compared to control group. There was a significant decrease in hemoglobin, red blood corpuscles, packed cell volume, blood indices (MCV, MCH, MCHC), PLT count decreased in Group IIB and Group IIIB when compared to control group. A significant increase in reticulocyte count increased in Group IIB and Group IIIB when compared to control group. Conclusions: Polycythemia in Group II of IDMs as compared to control was decreased with discharge. The increase in reticulocytic index and a decrease in blood indices persisted even before discharge. RDW that indicates anisocytosis was more prolonged in Group II than Group III. The increase in staff PMNL count was improved while the decrease in PLT count persisted even before discharge.