Background and alms In anticipation of vaccine development this study sought to determine the incidence, disease burden and associated financial burden of rotavirus (RV) infection, in hospitalised children. Methods Prospective observational study in two Dublin paediatric centres. Results Of 663 confirmed infections, 485 (73%) patients were hospitalised with community acquired (CA) RV; 178 (27%) cases were hospital acquired (HA) RV. A total of 243 (50%) children were <12 months of age, with peak incidence in the 6 to <12 month age group. CA RV resulted in utilisation of 2,305 bed days, with a median bed stay of three days (range 1-91), representing a minimum cost of E176,637 per year to the hospitals. When nosocomial spread and secondary cases are included, this increases to E258,695 per year. Conclusion CA RV infection accounted for 1% of all admissions during the study period at a minimum cost of E728.40 per case. A safe and effective vaccine could reduce morbidity and advantage children by allowing redeployment of healthcare resources to other critical areas.