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 1st 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.