Background: Swaddle bathing is one of the best practice types of bathing that recommended by Association of Women's Health, Obstetric and Neonatal Nurse. In this respect, nurses in NICUs play a proactive role in ongoing monitoring and stabilization of temperature as well as cardio-respiratory parameters of the neonates. Objective: to determine the effect of swaddle bathing on neonatal thermal stability and cardio-respiratory parameters. Setting: The study was conducted at Neonatal Intensive Care Units (NICUs) of the Specialized University Hospital at Smouha and El Raml Children's Hospital in Alexandria. Subjects: A convenient sample of 60 neonates comprised the study subjects. Tools: Two tools were used to collect the data. Tool one: Neonatal Biological and Clinical Characteristics Record. Tool two: Neonatal Body Temperature and Cardio-Respiratory Parameters Record. Results: The present study revealed that none of the neonates in the study group had low body temperature in all study periods. All neonates of the study and the control groups had normal respiratory rate along all periods of measurements after bathing. None of the neonates in the study group had low oxygen saturation (<95%). None of the neonates in the study group had decreased heart rate (< 120 beat / minute) compared to 13.3% of the neonates in the control group. Moreover, none of the neonates in the study group had increased heart rate compared to 10% and 6.7% in control group in that order. Conclusion: it was concluded that neonates who received swaddle bathing exhibited stable temperature and cardio-respiratory parameters more than those who received routine bathing except respiratory rate. Recommendations: In-service training program should be provided for nurses in NICUs about swaddle bathing technique that includes preparation, duration and how to use positive touch.