Immunoglobulin E (IgE) is a key mediator of the inflammatory reactions that are central to the pathogenesis of allergic diseases such as asthma and rhinitis. The recognition of the importance of IgE in allergic disease led to the development of omalizumab, a humanized monoclonal anti-IgE antibody that binds free circulating IgE and prevents the interaction between IgE and high-affinity (FcepsilonRI) and low-affinity (FcepsilonRII) IgE receptors on inflammatory cells. By removing free IgE, omalizumab also markedly downregulates the expression of high-affinity receptors on basophils, mast cells and dendritic cells. Several studies have shown that omalizumab effectively reduces the risk of exacerbations and hospitalization and improves symptom control, lung function and quality of life in patients with severe persistent allergic asthma. Importantly, omalizumab has been shown to be effective in patients with poorly controlled severe persistent allergic asthma, a group of patients with few effective additional treatment options. In addition, omalizumab has been shown to provide effective relief from the symptoms of allergic rhinitis (including patients with concomitant asthma). Patients with uncontrolled severe persistent allergic asthma are a challenging and difficult-to-treat population for whom omalizumab might represent an important new treatment option. In addition, omalizumab may provide a means to address comorbid allergic disease in patients with asthma. Further investigation is also warranted to explore potential applications of omalizumab in occupational asthma.