Often referred to as the NICU, this specialized facility brings together the medical team and technology needed to care for newborns with various disorders. Very premature newborns need the most care. Other newborns need care because of infection in the blood (sepsis) or pneumonia, respiratory disorders, heart problems, or birth defects that require surgery. These newborns are cared for in incubators to keep them warm while allowing the staff to observe them, or for short periods, they may be placed under overhead radiant warmers, which provide warmth while allowing the staff increased access to the newborn. Sick newborns may be attached to monitors that continuously measure their heart rate, breathing, blood pressure, and oxygen levels in the blood. They may have catheters placed inside an artery and the vein running inside the umbilical cord to permit continuous blood pressure monitoring, to allow repeated blood sampling, and to give intravenous fluids and drugs.

The NICU tends to be a very busy place. This busyness is sometimes at odds with the parents' need for time and privacy to become acquainted with their newborn, to learn the newborn's personality, likes, and dislikes, and ultimately to learn any special care that they will need to provide at home. Some NICUs have private (single-family) rooms and follow standards regarding noise control. Visiting hours have been greatly extended so that families can spend much more time with their newborn, and often hospitals arrange for on-site or nearby sleeping facilities for the parents.

Sometimes, parents feel that they have little to offer their newborn in a NICU. However, their presence, including stroking, speaking, and singing to their newborn, is very important. Newborns hear their mother's voice even before birth and are accustomed to it, and they often respond better to their own parents' attempts to calm them. Skin-to-skin contact (also called kangaroo care), in which the newborn is allowed to lie directly on the mother's or father's chest, is comforting to the newborn and enhances bonding. Increasing evidence indicates that premature newborns fed breast milk are significantly protected from developing necrotizing enterocolitis (a serious intestinal disorder) and infections, and that breastfeeding is otherwise beneficial.

Parents need to be kept informed of their newborn's condition and the doctor's plans, as well as the expected course and time of discharge. Regular meetings with the medical team are essential. Many NICUs also have social workers who help keep parents informed.