Stress associated gastric bleeding in sick neonates is an ominous sign and frequently heralds mortality. This study was aimed at evaluating the H2 receptor antagonist drug-ranitidine in the treatment of this bleeding. Thirty eight neonates with gastric hemorrhage were included in the study. Twenty neonates were given ranitidine while 18 acted as controls. Both groups were well matched with respect to various parameters. Gastric bleeding was controlled earlier in the ranitidine group in contrast to the control group. No untoward side effects were observed with the use of ranitidine. The use of this drug in stress associated gastric bleeding in neonates is recommended.