The heightened awareness of the problems of transfusion reactions, disease transmission, and potential immunosuppression has led surgeons to reevaluate their reasons for transfusion. Current practice policies recommend that elective transfusion of allogeneic blood be avoided whenever possible in patients having surgery. If patients are to have appropriate transfusion, the basic pathophysiology and clinical response of the patient to anemia must be understood. This article reviews the physiologic response to anemia in the patient having surgery and explores the components of the decision to use transfusion.