Unexplained Iron Deficiency Anemia (IDA) is known to be attributed to abnormal blood loss from lesions in the parts of gastrointestinal tract that are difficult to access during evaluation.A source of bleeding or lesions from these patients often not discovered with initial primary endoscopic methods and other variety of imaging techniques.This brings challenge in the effective treatment of the iron deficiency anemia.We present 2 cases of children who had chronic iron deficiency anemia without a definitive diagnosis.The routine endoscopic and barium X-ray studies did not reveal any source of bleeding.Pathology was identified later on when capsule endoscopy study was performed which showed source of bleeding from vascular lesion in the small intestine.Resection of this intestinal vascular lesion resulted in resolution of iron deficiency anemia.