Candidal infections in the nursery in the authors' clinic were previously infrequent, but an increased incidence was noted in the period from December 1996 to November 1997. This study was designed to investigate the risk factors and outcome of systemic candidasis in newborn infants followed up in this period. Sixty newborn infants with candidemia who had positive blood culture from peripheral veins were evaluated retrospectively. Of these 60 infants, 38 were prematurely born with a mean gestational age of 32.6±2.3 weeks and birth weight of 1830(78.62 grams. All of the infants except four term infants were under broad spectrum antibiotic therapy. Asphyxia (27.3%), congenital malformations (18.2%) and sepsis (18.2%) were the most common reasons for hospitalization among the term infants. Respiratory distress syndrome (31.6%), asphyxia (18.4%) and sepsis (15.8%) were the most common indications for hospitalization of the premature infants. Forty strains of C. albicans were isolated; in the remaining 20 cases, C. tropicalis, C. parapsilosis, and C. glabrata were isolated. Twenty two patients (36,6%) died. Early management with antifungal therapy improved the prognosis in clinically fungemia-suspected cases who had the risk factors.