Subcutaneous fat necrosis of newborns is a transient, benign process in full- term or postmature neonates. It is associated with perinatal distress. Newborn stress inhibits immature enzyme system, which already has relative inability to desaturate saturated fatty acids. It leads to fat crystillisation and necrosis. Skin biopsy revealed necrotic focus and crystallisation in fat cells. Hypercalcemia may be a potential complication.