Background: The hyperinflammatory state of Multisystem inflammatory syndrome in children (MIS-C) predisposes to thromboembolic complications. We report a neonate with multiple cavitary lesions in lung, which we suspect could be a manifestation of MIS following maternal COVID-19 infection during pregnancy. Case report: 8 day old neonate was referred with fever and fast breathing. Mother was positive for COVID-19 in 29th week. COVID-19 RT-PCR was negative, however, antibodies were positive. He had increased leucocyte count, and elevated levels of C-Reactive protein(CRP), Procalcitonin, Ferritin, Lactate dehydrogenase(LDH), and D-dimer along with bilateral reticulonodular opacities on chest radiograph and multiple nodules with evidence of cavitation in both lungs on Chest Tomography. All cultures were negative. A possible diagnosis of MIS was made. Infant was treated with Intravenous Immunoglobulin (IVIG) which he responded to with resolution of symptoms. Conclusion: Neonates exposed to COVID-19 should be evaluated for thromboembolic complications and IVIG can be one of the treatment modalities.