Diuretics are commonly indicated in neonates for conditions such as neonatal respiratory distress syndrome (RDS), bronchopulmonary dysplasia (BPD), congenital heart disease, and acute kidney injury (AKI). They help reduce pulmonary and systemic edema, improve oxygenation, and manage heart failure symptoms. Additionally, they are used in cases of electrolyte imbalances and hypercalcemia.