Signs and symptoms of neonatal jaundice. Yellow discoloration. Yellow appearance of the skin and eyes is one of the first signs of newborn jaundice. The baby's skin may turn yellow on the first or second day of life. The appearance may appear yellower as the days pass before gradually improving. Neonatal jaundice is a common condition that occurs during the transition period after birth. 1-3.This unavoidable condition occurs, eventually, in premature newborns all over the world. Jaundice is one of the most common causes of neonatal hospital readmission. Usually begins on the second day after birth and jaundice is one of the most common conditions requiring medical attention in newborns. It is caused by high levels of bilirubin in the blood. Globally, among full-term babies, premature babies develop jaundice in the first week of life. In most babies, early jaundice is physiological and harmless. Newborn jaundice is a yellowing of the baby's skin and eyes. A common condition, it can occur when babies have high levels of bilirubin, a yellow pigment produced when red breaks down. Jaundice is the medical term for a yellowish tint to the skin. The yellow color is caused by a substance called bilirubin, which is produced normally in the body. Babies with higher than normal blood levels of bilirubin, a condition called hyperbilirubinemia, get this yellow color when bilirubin builds up in the skin.