Current therapies for multiple myeloma include steroids, alkylating agents and high-dose chemotherapy with autologous stem cell transplant. These approaches are typically associated with initially good response rates, but they ultimately fail as a result of disease progression. New therapies that overcome resistance, lower toxicity and maintain remission are needed. Recent advances in the treatment of multiple myeloma include bortezomib and thalidomide. Lenalidomide (Revlimid®) is an immunomodulatory drug that has undergone rapid clinical development in multiple myeloma and was recently approved by the US FDA for use in patients with relapsed disease. Clinical trials demonstrate that lenalidomide, particularly in combination with dexamethasone, produces durable clinical responses in patients with relapsed and refractory disease and is generally well tolerated, with manageable toxicities. This review summarizes the profile of lenalidomide and the current evidence for its efficacy in multiple myeloma.