Yes, baby ear hair, also known as lanugo, typically falls off.
Here's a more detailed explanation:
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What is Lanugo? Lanugo is a fine, soft hair that covers the body of some newborns. While it's not exclusively found on the ears, it can be present there.
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When Does it Fall Off? Many babies lose their lanugo before birth. However, if a baby is born with lanugo on their ears (or elsewhere), it will usually fall off within a few weeks or months after birth.
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What Happens After it Falls Off? After lanugo sheds, it's replaced by vellus hair. Vellus hair is much finer and less noticeable.
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Why Does it Exist? Lanugo is believed to help regulate the baby's temperature in the womb and may also help protect the skin from the amniotic fluid.
Therefore, if your baby has hair on their ears at birth, rest assured that it is likely lanugo and will eventually fall off naturally.