This article communicates the first per-acute and fatal clinical report of transplacental transmission of Theileria equi from carrier mothers to foals from Punjab, India. Two cases of equine piroplasmosis due to T. equi were diagnosed in neonatal foals borne to Throughbred mares. High degree of parasitemia with annular and maltese cross shaped parasites in erythrocytes was seen in both cases. Blood cellular changes revealed leucopenia and neutropenia with mild degenerative left shift. Anaemia was macrocytic normochromic type. Intense yellow discoloration of mucous membranes indicated jaundice. In areas endemic for equine piroplasmosis, jaundice in neonatal foal can be easily misdiagnosed as neonatal isoerythrolysis. Foals with post-partum jaundice should always be screened for equine piroplasmosis.