Infection is a common cause of morbidity and mortality in patients with ESRD. Infection-related hospitalization (IH) incidence among US Medicare incident pediatric and adult dialysis and transplant patients within 3 yr of presentation was compared from 1996 to 2001: Hemodialysis (HD) patients (pediatric <i>n</i> = 1469; adult <i>n</i> = 305,323); peritoneal dialysis (PD) patients (pediatric <i>n</i> = 982; adult <i>n</i> = 27,119), and kidney transplant (KTx) patients (pediatric <i>n</i> = 1108; adult <i>n</i> = 31,663). IH were identified from principal diagnosis codes; IH cumulative incidence and rates were calculated from claims data. Cumulative incidence of IH at 36 mo for incident pediatric patients with ESRD during 1996 to 2001 was 39.9% in HD, 51.2% in PD, and 47.4% in KTx patients (HD or PD <i>versus</i> KTx, <i>P</i> < 0.0001). Cumulative incidence for adults was 52.6% in HD, 51.8% in PD, and 39.8% in KTx patients (HD or PD <i>versus</i> KTx, <i>P</i> < 0.0001). IH rates per 1000 patient-months were highest for pediatric KTx patients (adjusted rate ratio 1.53 <i>versus</i> HD and 1.90 <i>versus</i> PD, <i>P</i> < 0.001 for each) and adult HD patients (adjusted rate ratio 1.20 <i>versus</i> KTx and 1.11 <i>versus</i> PD, <i>P</i> < 0.001 for each). Within the first 36 mo of incidence, IH rates are highest for incident pediatric KTx patients compared with HD and PD patients, in contrast to findings for adult patients with ESRD. Pediatric KTx patients require infection surveillance after transplantation.