Objective To investigate the effects of iron supplementation from the second day after birth on 6-month hemoglobin (Hb), serum ferritin and motor development in infants at risk of early iron deficiency. Study design Term (37–41 weeks) infants of anemic (Hb ≤ 100 g L−1; N = 100) and non-anemic (Hb > 100 g L−1; N = 100) mothers were randomized to daily iron supplementation at a dose of 2 mg kg−1 from 36 h of age (N = 50, each of anemic and non-anemic mothers) or no iron-supplementation (N = 50 each of anemic and non-anemic mothers). Hb, serum ferritin and motor development at 6 months were compared in the two groups. Results Iron-supplemented infants had higher Hb (103.7 ± 9.3 g L−1 versus 97.0 ± 9.4 g L−1, p < .0001) and serum ferritin (133.93 ± 52.41 ng mL−1 versus 78.09 ± 42.03 ng mL−1, p < .001) concentrations, compared with the no iron-supplementation group. Their motor development was closer to age-appropriate norms than the no iron-supplementation group (5.83 ± 0.69 versus 5.18 ± 1.35, p < .01). Conclusion Early Iron supplementation is effective for improving iron status and motor development at 6 months in infants at risk for early iron deficiency.