Early onset of hyperglycemia is common among low birth weight neonates. Increased risk for death and major morbidities has been observed among hyperglycemic low birth weight infants. This prospective observational study was done to find out hyperglycemia as a predictor of increased morbidity and mortality in the low birth weight sick newborn and was conducted among the hospitalized newborn of Special Care Baby Unit (SCABU), BIRDEM hospital, Dhaka, Bangladesh from July 2009 to December 2009. A total of 198 LBW neonates were included in this study. One third (30.8%) LBW neonates were found hyperglycemic. The mean gestational age was 33.2±3.6 weeks and mean birth weight was 1535.8±780gm in the hyperglycemic neonates. In this study, highest prevalence of hyperglycemia was observed in birth weight <1000gm (38.46%) and in gestational age ≤28 weeks (46.15%). Apnoea, confirmed sepsis and suspected sepsis, confirmed necrotizing enterocollitis (NEC) and neonatal jaundice showed statistically significant association with hyperglycemia than that of non hyperglycemic group. Mortality of neonates in hyperglycemic group was higher (31.15%) than that of non hyperglycemic neonates (10.22%) and the difference in mortality between two groups were found statistically significant (p<0.002). From this study it can be concluded that hyperglycemia in early neonatal period is related to increased morbidity and mortality in low birth weight newborn.