The results of immunosuppressive treatment (a corticosteroid-azathioprine combination) in 104 children suffering from chronic HBsAg-positive hepatitis are reviewed. A recovery and/or improvement of the majority of the cases treated was observed after two to seven years of therapy, in contradiction to the opinion of other authors who treated adult patients. A biochemical and/or bioptic deterioration was observed in some cases in which treatment was interrupted too soon; this was followed by an improvement when treatment was re-initiated. No serious side-effects were observed with the combination treatment.