The Indoor Air and Children's Health Study is a prospective cohort study of the relation between indoor air pollution and lower respiratory illness (LRI) during the first 2 years of life. Information on family and household characteristics was obtained from a health maintenance organization for 1,424 infants enrolled at birth. Data on LRI were abstracted from medical records. The incidence of all LRI was 48.4 per 100 child-years. Wheezing-associated respiratory illness (WARI)/ asthma was the most common specific LRI, with an incidence of 11.5 per 100 child-years. Total LRI incidence was lowest during the first 6 months of life. Girls had lower incidence than boys [rate ratio (RR) = 0.8; 95% confidence interval (CI) = 0.7–0.8)]. With the exception of croup, all LRI were most common during February and March. These results are comparable with those of other prospective studies. Consistent with other studies, self-reported maternal smoking demonstrated an RR of 1.5 (95% CI = 1.2–1.8) for total LRI, but the association varied for specific LRIs from 2.3 (95% CI = 1.5–3.0) for WARI/asthma to 1.0 (95% CI = 0.7–1.6) for bronchitis.