Background: Neonatal hypoglycemia is a common metabolic complication in infants born to diabetic mothers. The risk is influenced by the type of maternal diabetes, glycemic control during pregnancy, and neonatal birth weight. This study aimed to evaluate the incidence and associated factors of neonatal hypoglycemia in relation to maternal diabetes in a Bangladeshi population. Methods: This cross-sectional study was conducted on 120 mother-neonate pairs at BSMMU, Dhaka, and Sibchar Health Complex, Madaripur, from June 2015 to May 2016. Data on maternal age, gravida, residence, type of diabetes (gestational or pre-gestational), glycemic control, and neonatal birth weight were collected. Neonatal blood glucose was monitored within the first 24 hours of birth to detect hypoglycemia. Associations were analyzed using descriptive statistics and chi-square tests. Results: Among the neonates, 40.0% developed hypoglycemia. The incidence was significantly higher in infants born to mothers with pre-gestational diabetes (60.0%) compared to gestational diabetes (25.7%). Poor maternal glycemic control was associated with a higher rate of neonatal hypoglycemia (72.0%) than good control (17.1%). The highest rate of hypoglycemia was observed in macrosomic infants (>4.0 kg) at 85.7%, followed by normal-weight (40.6%) and low birth weight infants (20.8%). Conclusion: Pre-gestational diabetes, inadequate glycemic control during pregnancy, and macrosomia are strongly associated with neonatal hypoglycemia. Early diagnosis and tight glycemic control are essential to reduce the risk of neonatal complications in diabetic pregnancies.