Hepcidin, a small peptide secreted mainly by the liver, plays a central role in iron status regulation. The experiments on hepcidin seemed very promising and gave new life to understanding iron metabolism. Many authors suggest that hepcidin measurement can be used as a clinical tool for the diagnosis and management of a wide range of iron-related disorders. The current review presents data concerning hepcidin, especially its biology, mechanism of action and its role in pathomechanism of many diseases.