Human recombinant erythropoietin was first cloned in 1985, and is currently available for clinical use for a variety of anemias. Following successful clinical trials using erythropoietin to treat adults with the anemia of end-stage renal disease, the first clinical trial evaluating the use of erythropoietin in preterm infants to treat anemia was published in 1990. Since that initial report, numerous clinical trials have reported various levels of success in the treatment of this anemia. Most recently, erythropoietin has been used in the first weeks of life in an attempt to prevent the anemia of prematurity. This review describes mechanisms of erythropoiesis in the fetus and neonate, and focuses on recent clinical trials evaluating the use of erythropoietin to prevent and treat anemia in preterm infants.