This cross-sectional study evaluated the utility of diffusion-weighted imaging (DWI) compared to conventional T1/T2 MRI in detecting neonatal hypoxic-ischemic encephalopathy (HIE). DWI was found to be significantly more sensitive, identifying diffusion restriction in 91.43% of cases versus 62.86% with conventional MRI. Although a trend suggested lower 1-minute APGAR scores was associated with more severe MRI findings, this correlation was not statistically significant. The study also highlighted distinct MRI patterns in preterm and term infants, with DWI proving valuable in early diagnosis and thus better management and prognosis. Future research should explore additional imaging techniques and longitudinal studies to better understand and manage HIE