Neonatal jaundice is a common condition in newborns, treated through phototherapy to degrade excess bilirubin. However, high costs and limited access to advanced incubators remain barriers, especially in regions like Asia and Africa. This paper introduces an affordable IoT-based phototherapy device powered by Extensa LX6 and LX7 processors, featuring programmable temperature and humidity control, along with sensors to monitor skin temperature and cradle moisture. The system includes a 360-degree rotational light source for effective phototherapy. Using Edge Impulse, a machine learning model is deployed on the hardware to monitor the baby’s position through live video streams for real-time remote monitoring. IoT connectivity enables remote control of the light source and exhaust fans, ensuring a safe environment. The device also includes fire protection, auto-sterilization, and a hand disinfectant system, ensuring hygiene and safety. This system combines AI, IoT, and automation to improve neonatal care in underserved regions.