Background Neonatal mortality remains a significant public health issue globally, particularly in low- and middle-income countries such as India. Early identification of neonatal danger signs (NDSs) is vital for reducing mortality rates, yet many mothers lack the knowledge required to recognize these warning signs. This study aims to assess the knowledge of NDSs among mothers of neonates in Chennai and nearby areas. Objective To estimate the level of knowledge of NDSs among mothers in and around Chennai, and to analyze the association between maternal age, socio-economic factors, healthcare availability, and employment status with their knowledge of NDSs. Methods A cross-sectional study was conducted between August and December 2022, across three healthcare facilities in Chennai. Data were collected from 430 postnatal mothers using a standardized, interviewer-administered questionnaire. Participants were selected through convenience sampling. The data were analyzed using descriptive statistics, chi-square tests, logistic regression, and non-parametric methods, with analysis performed in Python version 3.9 (Python Software Foundation, Wilmington, DE, USA). Results Among the 430 mothers, the average age was 26 years, with 321 (74.65%) being non-working. High awareness was observed for fever (91.86%, n = 395), diarrhea (74.88%, n = 322), and vomiting (69.53%, n = 299), while signs such as hypothermia (26.51%, n = 114) and lethargy (38.60%, n = 166) were poorly recognized. Family income was significantly associated with higher maternal knowledge of NDSs. However, maternal age, education level, employment status, antenatal visits, and spouse accompaniment did not demonstrate significant associations in the adjusted analysis. Conclusion Socio-economic status and healthcare access were significantly linked to maternal knowledge of NDSs. Despite high recognition of some danger signs, critical signs like hypothermia were poorly recognized. Tailored public health interventions focusing on economically disadvantaged groups and comprehensive health education could bridge these knowledge gaps, potentially reducing neonatal mortality in Chennai.