Atopic eczema or dermatitis (AD) is common and increasing in incidence; about 15% of children are affected at the present time. Education of patients and their families is essential in the successful management of AD. Emollients and appropriate-strength topical steroids remain the first-line treatment, and these are adequate to control the majority of cases. Secondary infection commonly requires systemic antibiotics or antiviral therapy. Dietary factors are important in less than 10% of children, and these decrease by the age of 3 years. Occlusive bandaging is useful for severe and excoriated eczema of the limbs. New topical immunosuppressants, tacrolimus and pimecrolimus, are a major advance in treatment, particularly for sensitive and flexural areas. For the minority of more severely affected children, second-line systemic treatments are useful. Further advances and more specific treatments are anticipated in the next few years.