Aim: The evaluation of pediatric emergency department observation unit for the hospitalization of patients with frequently seen childhood disorders, as an alternative to hospital wards. Material and Method: Demographic features, diagnoses, hospital stay intervals of patients hospitalized in Gazi University Faculty of Medicine Pediatric Emergency Department Observation Unit between January 1 st and November 31 st 2006 were collected from the Pediatric Emergency Department records and patient files. Results: Within one year, 22286 patients were admitted. Among them, 535 patients were hospitalized in The Pediatric Observation Unit while 919 patients were hospitalized in wards. A total of 535 patients (243 girls, 292 boys) aged between 1-228 months were hospitalized in the Pediatric Emergency Unit. Their diagnoses were trauma (164/535), intoxications (111/535), respiratory diseases (65/535) and neurologic diseases (61/535). Four-hundred-ninenty-four of all cases were hospitalized for less than 24 hours, 41 of them stayed more than 24 hours at the Observation Unit. 439 (82%) of all cases were discharged from the pediatric observation unit. 96 of all cases were transferred from the observation unit to the ward for continuation of medical treatment. Conclusion: 535 subjects were hospitalized in the Emergency Pediatric Observation Unit and 82% of these subjects were discharged from the Emergency Pediatric Observation Unit. This reality shows the benefits of this unit as prevention of unnecessary and over-hospitalizations, decreament in hospital stay intervals, early diagnosis of clinically suspicious subjects, prevention of delay in their treatment and increasing patient satisfaction by early discharge. Pediatric emergency observation units are a must for the pediatric emergency services for the better evaluation and treatment of children.