Introduction: The association between maternal obesity and increased neonatal morbidity in infants of diabetic mothers needs to be evaluated. Aims: The objective of the study is to compare the immediate neonatal complications of obese and nonobese gestational diabetic mothers (GDM). Settings and Design: This prospective case–control study was conducted in a tertiary care center in Kerala, South India, between July 1, 2019 and January 1, 2020. Methods: Six hundred and seventy-seven obstetric patient records of deliveries conducted between July 1, 2019 and January 1, 2020 were reviewed. Neonatal outcomes of infants of obese and nonobese diabetic mothers (categorization based on prepregnancy body mass index [BMI]) were compared with the healthy neonatal controls born during the study period. Outcomes studied were neonatal intensive care unit (NICU) admission, NICU stay more than 7 days, hypoglycemia, respiratory distress, phototherapy, and proportion of small for gestational age in infants of diabetic mothers. Statistical Analysis Used: Statistical analysis used odds ratio and Chi-square tests. Results: One hundred and sixty-eight were found to be eligible to be included in the study. Eighty-four GDM cases were matched with 84 healthy control mothers. Hypoglycemia (P = 0.001), respiratory distress (P = 0.002), NICU admission (P = 0.001), prolonged NICU stay, and phototherapy were significantly associated with those mothers who had high BMI. Conclusions: Compared to infants of nonobese GDMs, infants of obese GDMs are at higher risk of hypoglycemia, respiratory distress, phototherapy, and NICU stay more than 7 days.