We report a preterm, small-for-gestational age, very low birth weight male neonate presenting at birth with generalized reddish blue papulonodular lesions (including palms and soles), anemia, thrombocytopenia, hepatosplenomegaly, interstitial pneumonitis, sensorineural deafness, atrial septal defect, and communicating hydrocephalus. A diagnosis of blueberry muffin rash in a child with congenital rubella syndrome and communicating hydrocephalus was made based on clinical and laboratory findings. The rash disappeared by 10th day of life.