Background: Oxytocin is commonly used during labor and delivery for induction of labor and prevention of postpartum hemorrhage. This study aimed to assess the effects of labor oxytocin use on liver enzyme function in newborns. Methods: A case-control study was conducted. The case group consisted of 70 newborns whose mothers received oxytocin during labor, while the control group consisted of 70 newborns whose mothers did not receive oxytocin. Complete blood count (CBC), lactate dehydrogenase (LDH), creatine phosphokinase (CPK), aspartate aminotransferase (AST), alanine aminotransferase (ALT), and total and indirect bilirubin levels were measured in all newborns on the second day of life. Results: The levels of AST and total and indirect bilirubin were found to be higher in the case group than in the control group (51 vs. 42, 7.8 vs. 4.6, and 7.4 vs. 4, respectively; p < 0.005). The levels of CPK and LDH were also higher in the case group (p < 0.005). However, the difference in ALT levels was not significant between the study groups. Conclusion: The observed increase in liver enzymes in this study can indicate the effect of maternal oxytocin on the newborn’s liver function. The changes in liver enzyme levels due to oxytocin use were not found to be high enough to cause liver damage.