  In this paper, we establish the connection between the quantized W-algebra of
${\frak sl}(2,1)$ and quantum parafermions of $U_q(\hat {\frak sl}(2))$ that a
shifted product of the two quantum parafermions of $U_q(\hat {\frak sl}(2))$
generates the quantized W-algebra of ${\frak sl}(2,1)$.
