The management of small abdominal aortic aneurysms less than 5.0 cm maximum diameter remains controversial particularly in patients who are medically fit. All patients referred with abdominal aortic aneurysms less than 5.0 cm maximum diameter were prospectively followed regardless of their fitness for operation. Two hundred sixty-eight patients had been entered into the study by December 31, 1988, and monitored until December 31, 1990, by at least two aneurysm sizings by ultrasonography, CT scanning, or both. The mean follow-up was 42 months. Operations were performed on 114 patients (if they were fit for operation) when the aneurysm reached 5.0 cm, expanded more than 0.5 cm in a 6-month period, or when the patient had significant occlusive disease requiring repair. In this group the mean annual increase in diameter was 0.9 cm. One hundred fifty-four patients were monitored without operation for a mean period of 42 months. One rupture occurred in this group. The average annual increase in diameter in the group not undergoing operation was 0.24 cm. This study supports a policy of observation for abdominal aortic aneurysms less than 5.0 cm in maximum diameter.