A full term, vaginally delivered baby with normal apgar scores presented at 12 hours of age with respiratory distress, hyperthermia, capillary filling time > 3 seconds and X-Ray chest showing bilaterally white lung fields. Chest examination revealed bilateral crepts & endotracheal suctioning revealed small amount of blood. Investigations revealed no evidence of sepsis & coagulation profile was normal. A provisional diagnosis of pulmonary edema or congenital pneumonia was considered. Patient was put on ventilatory support with high peak end-expiratory pressure [PEEP] along with standard resuscitative measures. There was marked improvement within 48 hours and chest X-ray showed clearing of bilateral lung fields. Considering the initial X-ray picture, its rapid clearance, clinical course and other investigations, a final diagnosis of pulmonary edema with hemorrhage was made, hyperthermia being the causative factor. Unphysiological extremes of temperature can disrupt cellular integrity, and when it occurs at alveolar - endothelial level, it may cause pulmonary edema and hemorrhage.