Thirteen patients with capillary/cavernous hemangiomas of infancy have been treated with a combination of neodymium: YAG laser photocoagulation plus direct local instillation of steroids. In all cases, rapid growth immediately ceased and blanching started. Shrinkage of the lesions then occurred spontaneously over the ensuing months; any plateau in shrinkage was retreated. Five of 13 patients experienced dramatic blanching and shrinkage with one treatment. Six experienced mild to moderate shrinkage. Complications occurred in 2 patients.