Objective: To compare efficacy of special blue compact fluorescent lamp (CFL) phototherapy with special blue standard-length tube lights (STL) phototherapy in terms of rate of fall of serum bilirubin levels, required duration of phototherapy and to compare the incidences of clinically observable side effects between both groups. Study design: Randomized prospective Observational Study. Setting: Tertiary level of neonatal intensive care unit. Study was conducted from December 2011 to September 2012. Participants: Stable neonates of gestation >34 weeks with hyperbilirubinemia requiring phototherapy, were included. Sick babies, Rh iso-immunized babies, those who required and underwent exchange transfusion and whose parents refused for consent were excluded. Intervention: Babies were enrolled on consecutive basis and after randomization were allocated to receive phototherapy by CFL or STL. CFL and STL were both special blue lights with irradiance maintained above 15 µW/nm/cm2. Total serum bilirubin (TSB) was measured 24 hourly till phototherapy was stopped or an exchange transfusion was done. Vital parameters and clinically observable side effect were recorded 12 hourly till phototherapy was stopped. Results: 100 babies were enrolled in each group. Baseline characteristics, causes of jaundice, baseline haemoglobin and TSB were similar in both groups. Base line irradiance was more in CFL group compare to STL group {P=0.000, highly significant (HS)}. Rate of fall of serum bilirubin {P< 0.001(HS)} was more in CFL group. Mean required duration of phototherapy {P=0.002(HS)} was less in CFL group. Side effects were comparable in two groups (P > 0.05). Conclusions: CFL phototherapy is superior to STL phototherapy in terms of efficacy with comparable side effects.