39 children with brachial plexus palsy during the period 1/1 1990 30/6 1995 were identified retrospectively. The incidence was 1.8/1,000 (95% confidence interval 1.3-2.5/1,000). Shoulder dystocia was noted in 74%, and 44% were delivered by vacuum or forceps. Mean birth weight was 4,300 g. The outcome is known for all children. Seven children show permanent sequelae; in three of these there is marked loss of function. In the remaining children, normalization occurred within one month in 41%, within three months in 69% and within six months in 83%. Surgical repair is now a treatment option if elbow flexion is still impossible at three months of age.