Scalded skin syndrome is caused by infection with certain strains of a bacteria called staphylococcus. During the infection, the staphylococci produce a poison (exotoxin) that is responsible for the skin damage. Onset of the illness may be heralded by fever and skin tenderness. The effects of the toxin first produces reddening of the skin. Fluid collects beneath the skin loosening it. Subsequently, light rubbing of the skin may pull away large sheets of skin leaving a raw red base (a finding called the Nikolsky sign). These bare areas dry out and crust over.

It is found most commonly in infants and very young children.