In this study, hemoglobin (Hb), mean corpuscular volume (MCV) and serum ferritin (SF) levels were measured in 76 neonates and their mothers at delivery. Infants were grouped according to their gestational ages. Group I (< 34 weeks), group II (34-37 weeks) and group III (> 37 weeks) consisted of 15, 33 and 28 infants, respectively. Blood studies were repeated at two months of age in 50 neonates (26 from group II and 24 from group III). Among the three groups of infants, SF levels were lowest in group I, and among mothers, Group III had the lowest levels. There were positive correlations between maternal and neonatal SF levels in groups II and III. There was no difference between the SF levels of neonates born to mothers with depleted or adequate iron stores. Anemia with a normal SF level was present in 14.4 percent, subclinic iron deficiency (normal Hb and low SF level) in 11 percent and iron deficiency anemia (low Hb and low SF levels) in 7.8 percent of the mothers. At two months of age 38.4 percent of preterm and 16.6 percent of term infants had Hb concentrations less than 10 g/dl. Only one of these infants had a low SF level. There was a negative correlation between maternal SF levels and the Hb concentration of term infants at two months of age.