We report XMM-Newton observations of the Galactic supernova remnant G296.8-0.3, together with complementary radio and infrared data. The spatial and spectral properties of the X-ray emission, detected towards G296.8-0.3, was investigated in order to explore the possible evolutionary scenarios and the physical connexion with its unusual morphology detected at radio frequencies. G296.8-0.3 displays diffuse X-ray emission correlated with the peculiar radio morphology detected in the interior of the remnant and with the shell-like radio structure observed to the northwest side of the object. The X-ray emission peaks in the soft/medium energy range (0.5–3.0 keV). The X-ray spectral analysis confirms that the column density is high (N H∼0.64×1022 cm−2) which supports a distant location (d>9 kpc) for the SNR. Its X-ray spectrum can be well represented by a thermal (PSHOCK) model, with kT∼0.86 keV, an ionization timescale of 6.1×1010 cm−3 s, and low abundance (∼0.12 Z ⊙). The 24 μm observations show shell-like emission correlated with part of the northwest and southeast boundaries of the SNR. In addition a point-like X-ray source is also detected close to the geometrical center of the radio SNR. The object presents some characteristics of the so-called compact central objects (CCO). Its X-ray spectrum is consistent with those found at other CCOs and the value of N H is consistent with that of G296.8-0.3, which suggests a physical connexion with the SNR.