Sixteen collodion babies followed in the Neonatal Care Unit between January 1982 and December 1994 were evaluated retrospectively. The preterm/term ratio was 1.6, and complete shedding of the collodion membrane took an average of 21.9 days (range 18-46 days). Problems noted were marked temperature instability, defective barrier function, increased insensible water loss predisposing to hypernatremic dehydration, cutaneous infections and septicemia. Hypernatremia was observed in 11 (68.7%) and septic infection in seven patients (43.7%). All the infants were treated topically with vaseline containing five percent lactic acid. In the hypernatremic infants, intravenous fluid was administered for rehydration. In the septic infants, antibiotics were used according to the antibiogram. Four of the infants died due to septicemia. The mortality rate was 25 percent, and the major complications included hypernatremia, cutaneous infection and sepsis.