Atopic dermatitis (AD) affects approximately 10% of children and constitutes a significant financial, social, and medical burden to such patients. Recognition of the disorder is not difficult, but the variety of associated findings and differential diagnoses deserve special consideration. Sleep disturbances are particularly troublesome in patients with AD. The importance of vigorous hydration of the skin is highlighted in this article, as well as newer more "targeted" therapies that should prove to be of great use in the management of AD.