Introduction: Anemia of chronic disease has a widespread impact on patients with chronic disorders such as chronic inflammation, infection, malignancy etc. The pathophysiology behind it is largely due to involvement of hepcidin levels which are high as a result of the underlying chronic disorder, but negatively affects iron metabolism and erythropoiesis. Aim of the work: We tried to understand the pathogenesis, impact, diagnosis, and management of anemia due to chronic diseases. Methodology: We conducted this review using a comprehensive search of MEDLINE, PubMed and EMBASE from January 2001 to March 2017. The following search terms were used: anemia of chronic disease, anemia of inflammation, types of anemia, management of chronic anemia Conclusion: Since absolute treatment for the underlying chronic conditions are not available, various other modalities aimed at treating the anemia are developing. They include conventional and novel therapies. More researches must be done in order to manage the condition by treating the underlying cause, or for finding therapies with least side effects. Keywords: anemia of chronic disease, anemia of inflammation, types of anemia, management of chronic anemia.