Neo Hedorah is basically a cotton candy color version of Hedorah (the mold used to create the Neo Hedorah for the show was used to create Bandai's early 1990's action figure release of the regular Hedorah).
Although the origins of Neo Hedorah are unknown, it is known that the creature appeared on Matango Island, the island right next to Godzilla Island, early in 2098. The creature was able to defeat Godzilla in battle, and the mushrooms the Smog Monster produced spread all across Godzilla Island, destroying the food supply and even growing on the other monsters themselves. However, in the end it was Misato, the G-Guard Commander's daughter, who came to the rescue. She had discovered that the only way to kill the creature and the mushrooms it produced was to use extremely high temperatures, over 100,000 degrees, to dry them out. With the aid of the monster King Caesar, she performed an ancient ceremony that transformed the flying monster Rodan into the powerful Fire Rodan. Using an energy beam of pure fire, Fire Rodan burned Neo Hedorah to a crisp, ending the creature's reign of terror once and for all.
Neo Hedorah's powers include the ability to release a gas (similar to the normal Hedorah's sulfuric acid mist) that causes poison mushrooms to grow. These mushrooms spread quickly and even grow on the bodies of the other monsters, sapping their energy. He can also absorb the energy of other monster's energy beam attacks and convert them into its famous Crimson Eye Beams.
Do you like Neo Hedorah?