With the rise in premature births and the high mortality rate of newborns within their first day, the need for incubators has become critical. This underscores the necessity of such a device to continuously track their daily progress and monitor the parameters such as temperature of the baby and of the environment from incubator, humidity, gas, pulse, sound and movement. This paper presents the implementation of an Arduino-based neonatal incubator prototype, capable of measuring various data: baby temperature, environment temperature and humidity, baby pulse, baby movement, and to detect whether the baby is crying, or the presence of gas or smoke. The acquired data is transmitted in real-time, processed and displayed, for a facile interpretation. The prototype proves to be accurate and robust, successfully passing a series of tests, aimed at demonstrating the correct functioning of the sensors, both separately and combined. The proposed solution can be used in neonatal hospital units, to ensure the best possible conditions for the baby’s growth. The sensor system and data visualization facilities keep the medical team updated regarding the baby’s progress, and issues regarding the baby’s health are promptly identified.