Background: Erb's palsy is a disorder in which the upper section of the brachial plexus (C5, C6) that innervates the arm is destroyed, resulting in an adducted, internally rotated shoulder and a pronated forearm, commonly referred to as "waiter's tip position". The purpose of this study was to detect the effect of reciprocal electrical stimulation in Erb's palsy children. Patients and methods: A total of 30 Erb's palsy children of both sexes participated in this study with age ranging from 1 to 3 years; they were divided randomly into two groups of equal number (15 children in each group). Group A received a specially designed physical therapy program only. Group B received the same specially designed physical therapy program given to group A in addition to reciprocal electrical stimulation for biceps and triceps muscles. Electroneurography technique was used for measuring the percentage of degeneration of the biceps brachii muscle. A computerized electromyography apparatus was used before and after treatment for both groups. Results: There was improvement in functional recovery of the upper limb in Erb's palsy children of both groups, but in favor of Group B. Conclusion: Reciprocal electrical stimulation has an effect on functional recovery of the upper limb in Erb's palsy children.