The hospital attendants, who had fallen asleep, informed about the matter to the parents after they found the baby missing when they woke up, police said.
The child belonged to Mohammad Mushtaq and Sharifa, who hail from Nowshera area of Rajouri district.
The hospital administration has suspended three security guards following the incident, Medical Superintendent A K Sharma said.
"Three security guards were on duty when the incident took place. We have suspended them and have also directed other guards to verify and check everyone who is going out of the hospital with a baby," he said.
Earlier, two babies were stolen from the general ward of the hospital in November last year, police said.