Anemia of Inflammation (AI) is a highly prevalent comorbidity in patients affected by chronic inflammatory disorders, such as Chronic Kidney Disease, Inflammatory Bowel Disease or Cancer that negatively impacts on disease outcome and quality of life. The pathophysiology of AI is multifactorial, whereby inflammatory hypoferremia and iron-restricted erythropoiesis play a major role in the context of disease-specific factors. Here we review the recent progress in our understanding of the molecular mechanisms contributing to iron dysregulation in AI, the impact of hypoferremia and anemia on the course of the underlying disease as well as (novel) therapeutic strategies applied to treat AI.