Background: In neonatal intensive care units (NICUs), it is necessary to manage thermal status in preterm neonates. Thermoregulation management is considered a critical part of neonatal care. Neonatal jaundice is the leading cause of hospital admission and re-hospitalization in the first week of life worldwide. Phototherapy is the single most common intervention used for the treatment of neonatal jaundice. Bag-valve-mask (BVM) ventilation is a critical life-saving intervention for airway management in patients whose respiratory drive is insufficient to effectively ventilate and oxygenate. Aim:To assess and compare the effectiveness of Scenario Based Learning in terms of competency (knowledge, skills and clinical decision-making ability) regarding NICU equipments of nursing students in experimental and comparison group. Methods and materials: A quasi-experimental non-equivalent control group pre-test post-test was used in this study. The data was collected by using Structured knowledge questionnaire, structured observational checklist and structured clinical decision making ability questionnaire were used to collect data. Scenario Based Learning was administered in experimental group and conventional teaching in both experimental and Comparison group. Result: The mean post test knowledge score (13.38+5.42) of nursing students in experimental group was higher than the mean pre test knowledge score (9.63+5.75) and the calculated ‘Z’ value -4.06 was found to be statistically significant at (p-0.00*) at 0.01 level of significance. The mean post test skill score (57.62+8.33) in experimental group was higher than the mean pre test skill score (18.31+6.74) and the calculated ‘t’ value of 27.56 was found to be statistically significant at [t 27.56 (51)= 1.67; p=0.00*].The mean post test clinical decision making ability score (6.65+2.69) in experimental group was higher than the mean pre test clinical decision making ability score (5.05+2.58) and the calculated ‘t’ value of 4.02 was found to be statistically significant at [t(51)= 1.67; p=0.00). Conclusion: The findings concluded that both scenario based learning and conventional teaching was effective in improving the knowledge, skills and clinical decision making ability of nursing students regarding scenario based learning on NICU equipments and scenario based learning was found to be more effective as a part of educational method.