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By Mayo Clinic staffThough the exact cause of cradle cap isn't known, one contributing factor may be hormones that pass from the mother to the baby before birth. These hormones cause an abnormal production of oil (sebum) in the oil glands and hair follicles.
Another factor may be a yeast (fungus) called malassezia that grows in the sebum along with bacteria. Antifungal treatments, such as ketoconazole, are often effective, supporting the idea that yeast is a contributing factor.