The role of capsule endoscopy (CE) in the diagnosis of overlooked source of bleeding from stomach in patients with obscure GI bleeding is unclear. We report a patient in whom CE averted empirical subtotal hemicolectomy for severe, recurrent GI bleeding. Case Report: This 64-year-old male was admitted with one week of recurrent episodes of melena and hemoglobin of 6.8 g/dl. Despite 2 EGDs, 3 colonoscopies, 2 tagged RBC scans, enteroscopy, and enteroclysis, no source of bleeding was identified during hospitalization for 10 days with ongoing bleeding that required 14 units of blood transfusions. Capsule Endoscopy: “Heme” in the duodenum→ Source of bleeding (stomach) Initial review of CE endoscopy did not reveal any active bleeding. The patient was scheduled for subtotal colectomy for diverticular disease with the assumption of diverticular bleeding. On repeat review of CE, the stomach was normal and there was “heme” noted in the duodenum. Therapy: Surgery was deferred. EGD: a single large Dieulafoy's lesion with active arterial spurting was seen in the stomach. Seven endoclips were placed with excellent hemostasis with no recurrence of bleeding (FU: 1 year). Conclusions: This case illustrates the role of CE in the management of obscure GI bleeding from stomach. Identification of “heme” in an area should be considered an important red flag to the potential site of bleeding proximal to it, in our case “heme” in the duodenum pointed out to a gastric bleeding. Suspicion of gastric bleeding based on capsule endoscopy findings in this case averted a major operation. [figure 1][figure 2]FigureFigure