The outcome of neonatal septicemia in 320 infants seen during 1969-83 has been evaluated. Mortality decreased from 27% to 12%. The incidence of moderate to severe handicaps in survivors remained unchanged at around 20%. Sixty percent of these handicapped children had meningitis or osteomyelitis, and many of these were healthy prior to onset. All handicapped infants without osteomyelitis or meningitis had several other risk factors that may have contributed to the final outcome.