The birth of a newborn is a joyous occasion, yet it can be profoundly stressful for premature or sick infants requiring immediate admission to the Neonatal Intensive Care Unit (NICU). Despite advancements in neonatal care from traditional, in-person consultations to remote monitoring, privacy concerns about health data remain a critical challenge. The study proposes a novel Healthcare-Internet of Things (H-IoT) Smart Infant cradle architecture featuring a user-friendly data acquisition framework equipped with optimized sensor integration. This system aims to empower parents with real-time monitoring, precise data insights, and adequate access to infants’ health information. This ensures seamless data sharing between parents and healthcare professionals, thus abridging the existing gaps. The system’s core consists of a NodeMCU controller board integrated with a set of sensors—sound, temperature (DHT 11), and moisture for comprehensive monitoring of the infant’s environment and physiological parameters. Real-time data is displayed on a cradle-integrated tablet and simultaneously transmitted to a central server (Ubidots and MQTT Server) for further analysis. Phototherapy treatment is optimized through an adaptive mechanism that adjusts temperature based on real-time infant body temperature fluctuations. Furthermore, an external camera enables remote video monitoring and instant notifications via a designated mobile application, providing real-time alerts and actionable insights. The proposed system not only alleviates the burden on medical staff but enhances neonatal care through a secure data-driven approach with seamless data integration and management making it easier for parents to balance their professional and family responsibilities.