Objective To analyze the application effect of continuous quality improvement in neonatal skin nursing and its influence on the occurrence of skin injury. Methods A total of 76 neonates born in obstetrics department of our hospital from March 2021 to March 2022 were selected as the subjects. They were divided into routine group and observation group by random number table method, with 38 cases in each group. The routine group was given routine skin nursing, and the observation group was given continuous treatment to improve skin nursing. The incidence of skin injury, clinical indicators, pain and nursing satisfaction were compared between the two groups. Results The incidence of skin injury in the observation group was 5.26%, which was lower than 23.38% in the routine group (P<0.05). The healing time of skin injury, hospitalization time and medical expenses in the observation group were better than those in the routine group (P<0.05). There was no significant difference in FLACC score between the two groups on the 1st and 2nd day of hospitalization (P>0.05), while the FLACC scores of the observation group on the 3 rd and 4th day of hospitalization were lower than those of the routine group (P<0.05). The total nursing satisfaction of the observation group was 97.37%, which was higher than 76.32% of the routine group (P<0.05). Conclusion The application of continuous quality improvement in neonatal skin nursing is effective, which can effectively reduce the incidence of neonatal skin injury, shorten the treatment time, reduce the treatment cost, and can effectively relieve pain, promote wound healing, improve nursing satisfaction, achieve ideal nursing results.