Neonatal survival has emerged as the key to further reduction in child mortality. Distribution of neonatal deaths in first week of life in the community is poorly understood. In a cross sectional survey covering a population of 13,16,681, information was collected retrospectively for one-year reference period on 30,473 births, 1,521 neonatal deaths and 2,218 infant deaths from five rural sites in India. Of all neonatal deaths, 39.3% occurred on first day of life, and 56.8 % during the first three days. The study highlights importance of first three days as the most hazardous phase in life and provides evidence base for postnatal care guidelines.