Spontaneous resolution of acute hydrocephalus without aspiration of cerebral fluid is rare. In a neonate born at full term this has only been reported once before. We report on one further case that was caused by intraventricular haemorrhage (IVH). The probable mechanism is resolution of the acute haemorrhage in the region of the aqueduct, resulting in resolution of the hydrocephalus itself. The importance of considering conservative management of acute hydrocephalus in the clinically stable neonate is emphasised.