The aim of this work was to study the effect of milk supplementation with lactoferrin on the rheological and sensory properties of yogurt and to evaluate the efficiency of lactoferrin-fortified yogurt in the treatment of iron deficiency anemia (IDA), microcytic hypochromic anemia, in children. For this purpose, yogurt was manufactured from milk fortified with commercial lactoferrin and the yogurt sensory characteristics, pH and concentration of lactic acid of supplemented yogurts, were determined throughout the shelf-life period storage (7 days) at 4°C and compared with a control yogurt. Furthermore, the use of lactoferrin-fortified yogurt in treatment of IDA in comparison to commercial lactoferrin alone (lactoferrin dissolved in water) were assessed with 20 children (2–5 years old) suffering from IDA. Children were divided into two groups (A and B), 10 children each. Group A received lactoferrin-fortified yogurt while, group B received commercial lactoferrin dissolved in water. The blood cells indices, Hb, HCT, MCV, TLC, Platelets, Serum iron, Serum ferritin, TIBC and Transferrin were analyzed before and after treatment for each group. The results showed that manufactured fortified yogurt was firm, with acceptable sensory properties and the Hb and red blood cell indices significantly improved in patients received lactoferrin-fortified yogurt even than patients received lactoferrin only. This study concluded that lactoferrin addition had no significant effect on yogurt manufacture and the yogurt produced from milk fortified with lactoferrin had a vital supportive treatment for the management of IDA in children.