Melatonin is a hormone produced by the pineal gland. In addition to its hormonal effect, it has strong antioxidant properties. Melatonin is probably best known for its ability to control circadian rhythm; it is sold in many countries as a supplement or drug for improving of sleep quality. However, melatonin’s effect is not limited to control of circadian rhythm:. it is involved in other effects, including cell cycle control and regulation of several important enzymes, including inhibition of inducible nitric oxide synthase. Melatonin affects immunity as well. It can modulate the immune response on disparate levels with a significant effect on inflammation. The role of melatonin in body regulatory process is not well understood; only limited conclusions can be drawn from known data. The current review attempts to summarize both basic facts about melatonin’s effects and propose research on the lesser known issues in the future.