Atopic dermatitis (AD) is the most common chronic inflammatory skin disorder in childhood. Sleep disturbance is a common (50–60%) symptom of AD in youngsters, and itching, dry skin, inflammation, and irregular circadian rhythms are its secondary causes. The study used EEG polysomnography, sleep actigraphy, and parental reporting to describe in detail the sleep architecture of infants with early-onset atopic dermatitis (AD) compared to controls. The observational study will recruit 6 to 8-month-old children with moderate to severe AD and age-matched control newborns who do not have AD. Diurnal sleep electroencephalography and polysomnography will be carried out in their study facility for 6 to 8 months. At 6-8 months and 12 months, nocturnal sleep actigraphy will be conducted over the course of 5 consecutive nights at home. Between 6 and 12 months, monthly surveys recorded quantitative and parental sleep data. At 6 to 8 and 12 months, skin barrier and immunological profiles will be recorded. Using standardized severity assessment instruments, AD will be evaluated and managed in accordance with the procedure. At 18 months, a neurodevelopmental evaluation was carried out to evaluate the child’s behavior and intellect. An estimated sample size of 50 participants in each group was necessary to power the primary outcome of the disturbed macrostructure of sleep and secondary outcomes of the disturbed microstructure of sleep and disturbed parental sleep, assuming an attrition rate of 60%. Parental educational level, parental depression, feeding practice, and sibling count are potential confounding variables that will be adjusted for in the data analysis. The thorough electroencephalography, innovative actigraphy techniques, and longitudinal parent-reported data used in the study will provide a rich investigation of sleep in infants with AD in the first year of life. In addition, it might offer recommendations for the best AD treatment to stop or lessen sleep disruption.