The testicular hydrocele in a newborn is most often a developmental defect, which consists in incomplete sealing of the canal through which the testicles moved from the abdominal cavity to the scrotum. As a result, fluid from the peritoneal cavity accumulates in the scrotum. In the first year of life, the testicular hydrocele should be spontaneously absorbed, otherwise surgery is performed. To be sure that the cause of the scrotal deformity is a hydrocele, see your baby's doctor for an ultrasound scan and make a diagnosis.