This paper analyses the socio-economic impact of providing antiretroviral therapy to AIDS-patients in Khayelitsha, Cape Town. The analysis employs data from a 2002 panel study of AIDS-patients receiving ARV treatment. This sample is placed within a comparative context by reporting comparable data from a 2000/1 survey of Khayelitsha. The comparative analysis shows that ARV patients suffered higher rates of ill health and experienced lower labour force participation rates than the Khayelitsha sample. Findings from the 2002 panel
survey indicate that, after one year of treatment, the health status and labour force participation rate improved significantly for ARV patients.