Many preterm infants are given multiple red blood cell transfusions during the early weeks of life. Because firm standards for neonatal transfusions do not exist, it is important to consider the pathophysiology of the anemia of prematurity, the goals of transfusion therapy and blood banking practices that best provide safe and effective neonatal transfusions. There is increasing agreement that efforts continue to minimize phlebotomy blood losses, to transfuse per conservative indications and to limit donor exposure by transfusing stored red blood cells from a single unit reserved for an infant--rather than insisting on fresh blood.