Yes that is the fan, it is spining. It has a plastic grate, just like the one on the bottom, that keeps the chicks from getting hit by the fan. It came assempled, all I did was take it out of the box and pluged it in like it said. I knoe that if it has a fan it should be kept around 99.5. None will hatch from 102 right? It is staying right at that temp doesn't fluctuate from 102 muchthat is with the termometer by the side of the bater, which is right under the heat cable thing. But that is the only spot I can see it thro the hole. I moved it to the center waited awhile, and opened it up and it is reading 101.3 in the middle of the bator, still high I know.