We present a quantitative study of the effects of losses in layered media with a metamaterial layer as the constituent. The metamaterial is modelled by a causal isotropic effective medium (Lorentz-type) response. The parameters for the model are picked from a recent experiment. Two specific examples, namely, that of resonant tunnelling (RT) and imaging are chosen to demonstrate the devastating effects of losses in the present day metamaterials. It is then shown how large delays in RT, as well as near perfect imaging can be restored in gain-doped metamaterials. We also point out yet another use of metamaterials for achieving near perfect absorption, and its use for probing strong atom–field interaction.