It erases, but doesn't have an eraser. It's a little hard nub, and works great. I love this pen. And thanks to my husband's Staples couponing skills, we got them for next to nothing. Which makes trying new things so much fun.
I tell ya, I am digging this new toy.
Here's one catch, it does smear a bit when erasing on freshly printed paper, but regular lined paper, no problems at all.