A preliminary report was made of 2 years' experience with hospitalization of children in the Care-By-Parent Unit. A surprising number of mothers can, with supervision, take complete care of their ill children in an area of the hospital designed for this, releasing registered nurses to work elsewhere. The authors are convinced that this plan lessens the emotional trauma of hospitalization to the child. Most importantly, it greatly improves the learning experience for mothers who are interested in their child's illness and its management at home. The learning experience of medical students and house staff is enhanced. Certainly, hospitalization in this manner is economical as far as personnel and money are concerned. In spite of lower costs, the authors feel that patients on this unit receive superior care.