Provided herein is a method of diagnosing and treating a subject suffering from atopic dermatitis (AD), the method comprising: (a) obtaining a skin biopsy from a subject suspected of suffering from AD; (b) determining a level of RNA expression in the skin biopsy of genes selected from the 89ADGES gene panel; (c) comparing the determined level of RNA expression of the selected genes to the level of RNA expression of the selected genes in a reference sample comprising RNA expression products from normal healthy skin cells; (d) diagnosing the subject as suffering from AD when specific genes are up-regulated compared to the reference sample and when specific genes are down-regulated compared to the reference sample; and (e) treating the subject with a therapy effective for the treatment of AD. Methods of managing treatment of a subject suffering from AD are also provided.