Neonatal jaundice is a common condition seen in newborns, affecting over half of term infants. It results from increased bilirubin levels in the blood. The main causes are physiological due to immature liver function in newborns or blood group incompatibilities between mother and baby. Management involves monitoring bilirubin levels, supporting feeding and hydration, and using phototherapy or exchange transfusion in severe cases to prevent potential brain damage from high bilirubin levels.