Napthalene can enter your system through inhalation, skin absorption, ingestion, and eye and skin contact. Napthalene may produce possible damage to eyes, liver, kidneys, skin, red blood cells, and the central nervous system. Hemolytic anemia, caused by the breakdown of the red blood cells, has been reported following immediate and long-term exposure. Infants exposed to clothes, blankets, and diapers stored in naphthalene mothballs are at risk for hemolytic anemia. Mild degrees of anemia often cause only slight symptoms like a lack of energy and fatigue. In more severe cases, hemolytic anemia can cause acute kidney failure.