We report a five year experience of Home Oxygen Therapy Program in a developing country and its cost benefit ratio. This interdisciplinary program, which was started over 5 years ago, is designed for young infants with stable CLD, but who require supplemental oxygen to maintain oxygen saturation>92%. Parental consent is needed for inclusion in this program. The families are provided with a specially designed educational program and infants are followed on a regular basis. We determined the family's social class by Graffar's method and evaluated equipments used and their side effects. Equipment failure was mild; personal damage was considered either moderate, severe or fatal. The cost for each infant was analyzed. Comparisons were made to previously performed estimations of hospitalization costs for similar cases.(These cost estimates were $9000 per month per case.) Between 5/92 and 5/97 a total of 77 infants were considered for Home Oxygen Therapy Program: 48 due to prolonged ventilation secondary to viral pneumonia (Home Oxygen started at 15 months of age) and 29 due to post neonatal CLD (Home Oxygen started at 5 months of age). Nine infants (12%) died due to worsening CLD. All the other 68 infants were followed carefully. The majority of families (72%) were of low or very low social class (IV & V); 15% lived more than 125 miles from the hospital. Oxygen tanks were used in 82% of infants, oxygen concentrator in 10%, and liquid oxygen in 8%. Home Oxygen Therapy was used >2 years in 25%; in 43% Home Oxygen was discontinued after an average of 11.5 months. Side effects were mild in 5 cases and moderate in another 5 (2 traumatic injuries, 1 extensive facial dermatitis, 2 clinical deteriorations due to inadequate supply). Coverage was provided by“HMO-like” insurance (44%), state or federal agency (43%) and family or donations (13%). Monthly cost was between $920 (infants with minimal requirements) and $1340. For the whole group, the estimated cost savings were>$1,500,000. We conclude that Home Oxygen Therapy is feasible in developing countries, even for prolonged periods and for families of very low social class and from “remote” areas. Oxygen dependent infants with CLD are now more likely to survive in developing countries due to the incorporation of intensive care technology. Home Oxygen Therapy can promote earlier hospital discharge and improve the infants' quality of life and family bonding. Furthermore, in areas with scarce economic resources, the significant savings achieved for the care of these infants can help support other health programs.