Acute bronchiolitis in infants frequently leads to hospitalization. Despite the burden of this disease, there is no established consensus on inhalation therapy. This multicenter, randomized, double-blind clinical trial compared inhaled racemic epinephrine with inhaled saline, and on-demand inhalation with fixed-schedule inhalation in infants (< 12 months) with moderate-to-severe acute bronchiolitis. The primary outcome was the length of hospital stay, and secondary outcomes included change in clinical score 30 min after the first inhalation, use of nasogastric tube feeding, oxygen supplementation, and ventilator support. Four hundred four (59.4% male) children with a mean age of 4.2 months were enrolled, on hospital admission, from eight hospitals in Norway from January 2010 to May 2011. Inclusion criteria were clinical signs of bronchiolitis, age < 12 months, and a clinical score of at least 4 on a scale of 0–10. Clinical score was calculated by a pediatrician, composed of the sum of points allotted from 0 (normal) to 2 (severe illness) for the following clinical variables: general condition, skin color, auscultatory findings, respiratory rate, and retractions. Exclusion criteria were presence of serious cardiac, immunologic, neurologic, oncologic, or preceding pulmonary disease; more than one prior episode of obstructive airway disease; coughing for more than 4 weeks; and glucocorticoid therapy in the preceding 4 weeks. Subjects were randomized to receive either inhaled epinephrine or inhaled normal (0.9%) saline on either a fixed (not described) or on-demand treatment schedule, resulting in a total of four study groups. There was no significant difference in any of the primary or secondary outcomes in infants treated with inhaled racemic epinephrine vs. inhaled saline (p > 0.1 for all comparisons). Additionally, history of atopic eczema or wheezing, family history of atopic disease, and sex had no significant influence on treatment response. On-demand inhalation was associated with a significantly shorter estimated length of stay – 47.6 h (95% confidence interval [CI] 30.6–64.6) vs. 61.3 h (95% CI 45.4–77.2, p = 0.01) – as well as less use of oxygen supplementation, less use of ventilator support, and fewer inhalation treatments (12.0 vs. 17.0, p < 0.001) when compared to fixed-schedule treatments. The study medication was discontinued in 83 children (20.5%), however, there was no significant difference in discontinuation rate between subjects in the various groups. In infants with acute bronchiolitis, treatment with inhalation of racemic epinephrine was not associated with shorter hospital stay when compared to treatment with inhaled saline. However, inhalation treatments (regardless of agent) given on demand were superior to those on a fixed schedule, with a reduction of mean length of stay of 13.7 h. On-demand treatment was also associated with a mean five fewer total treatments when compared to fixed scheduling, supporting the goal of “minimal handling,” allowing acutely ill infants to sleep with minimal interruption.