Introduction: Low level of erythropoietin is found to be associated with anaemia in preterm planned as a clinical trial of erythropoietin therapy for prevention of anaemia of prematurity in very low birth weight babies, and if it could reduce the number of blood transfusions. Methods: All very low birth weight babies, following the inclusion criteria were enrolled in the study on the 7th day of postnatal life. The babies were divided into erythropoietin group (who were administered recombinant human Erythropoietin 250 IU/kg/dose on all Mondays, Wednesdays, and Fridays from the 8th day of life) for a period of 4 weeks. The vitals were recorded regularly, and haematological parameters (Hb, retics, smear) were recorded on day 8, day 22, day 36 and day 70 and blood transfusion requirements. Results: The study was carried out on 52 patients, with 26 each in the study and control groups. There was no significant difference between the mean Hb levels in the two groups except on the day 36 ie, at the end of the study period, where it was significantly higher in the study group (p 0.007). Conclusions: The present study has shown that rHuEpo administration leads to a rise in the haematological parameters like Haemoglobin and reticulocyte counts in VLBW infants. However, we did not find a significant decrease in the blood transfusion requirements in patients who received rHuEpo therapy.