Background: Bilirubin neurotoxicity involves a spectrum of varying severity that could result in adverse long-term sequelae. Aims: To compare the neurodevelopmental outcome of full -term neonates who underwent exchange transfusion with those who did not. Study design: A retrospective cohort study. Subjects: This study included a retrospective review of records of sixty neonates who were matched in admission ages and serum bilirubin levels and the comparison groups were those who received an exchange transfusion (n = 30) versus those where exchange transfusion was planned, but the bilirubin levels dropped sufficiently during the period where the exchange blood was being prepared (n = 30). History, clinical examination, and laboratory investigations were documented. Outcome measures: Neurodevelopmental outcome, at 6 months of age, using Bayley scales of infant development was assessed. Results: The exchange group had statistically significant lower cognitive scores (p -value 0.005). The higher the rate of bilirubin decline, the better the language and motor scores in the phototherapy group (p -values 0.020 and 0.024 respectively). Infants with longer duration to exchange transfusion had lower cognitive, language, and motor scores (p -values 0.01, 0.001, and 0.003 respectively). Conclusions: Slower rates of bilirubin decline and longer duration before intervention increase the chances of adverse neurodevelopmental outcomes.