Introduction: Systemic Lupus Erythematosus (SLE) is a chronic, usually life- long, potentially fatal autoimmune disease characterized by unpredictable exacerbations and remissions with various clinical manifestations. Anemia is common in patients with SLE especially anemia of chronic disease. Our study aimed to prove the role of serum hepcidin in development of anemia of chronic disease (ACD) in patients with Systemic Lupus Erythromatosus (SLE). Patients and methods: Serum hepcidin was investigated by (ELISA) in 50 patients with Systemic lupus Erythematosus(SLE) divided into 25 patient with chronic inflammatory anemia and 25 patient without anemia, 20 patients with iron deficiency anemia and 15 healthy subjects with matched age and sex.Results: Serum hepcidin was significantly higher in SLE patients than IDA patients and control group, with mean+SD in SLE group (7.8±3.4mg/dl) with range (1.2-13.8) compared to mean+SD (4.6±2.5 mg/dl) in IDA group with range (0.88-9.3) and mean+SD (2.2±0.8) and range (0.9-3.7) in the control group with P value <0.001, with sensitivity 75% and specificity 60% in detection of anemia in general and with sensitivity 91% and specificity 67% in anemia in SLE patients. Serum hepcidin was also significantly higher in SLE+a patients than SLE-a, with mean+SD in SLE+a group (9.6±3.5mg/dl) with range (1.2-13.8) compared to mean+SD in SLE-a group (5.6±2.8 mg/dl) with range (1.1-12.2 mg/dl) with P value <0.001. Conclusion: The measurement of serum hepcidin appears to be a useful addition to the laboratory tests that can help in the diagnosis of ACD in patients with SLE. It is both sensitive and specific for detection of anemia in SLE patients, and a useful marker for disease activity. It can also be used to differentiate between Iron deficiency anemia (IDA) and anemia of chronic disease (ACD).