Two neonates with proximal dorsal swelling and skin necrosis had median, ulnar, and particularly radial nerve palsies after birth, which was interpreted as compartment syndrome in the forearm. The swelling in case 1 disappeared, the skin lesion in case 2 healed, and the functions of nerves recovered almost completely in both cases, although the forearm and hand in the second patient were shorter and thinner than the contralateral side.