Estraderm (generic: estradiol) is a prescription medication used to treat the symptoms of menopause including hot flashes and vaginal dryness. It is also used to treat conditions in which a woman's ovaries do not produce enough estrogen naturally, and to prevent osteoporosis in women who have gone through menopause. Estraderm contains estradiol, a form of the hormone estrogen. It works to reduce symptoms of menopause and to prevent osteoporosis by replacing estrogen that the ovaries no longer produce.