OBJECTIVES: The aim of this study was conducted to estimate the cost-effectiveness of cetuximab combined with radiotherapy compared to radiotherapy alone in patients with locally advanced squamous cell carcinoma of head and neck. METHODS: A decision-tree analysis was used to compare cetuximab combined with radiotherapy and radiotherapy alone in the treatment of patients with locally advanced squamous cell carcinoma of head and neck from the perspective of the Bureau of National Health Insurance(BNHI) in Taiwan. The model was based on individual patient data extracted from an international phase III trial. The direct medical costs of care were based on the reimbursement of Bureau of National Health Insurance in Taiwan. One-way sensitivity analyses were performed with varying the costs and clinical parameters. RESULTS: The incremental cost per quality-adjusted life-year for patients receiving radiotherapy in combination with cetuximab compared to radiotherapy alone was in the range of $70,469/yr to $542,334/yr in the base-case analysis. Sensitivity analysis showed the robust results. CONCLUSIONS: This study demonstrated the addition of cetuximab to high-dose radiotherapy regimen is likely to be cost-effective in consideration of higher locoregional control rate to be achieved compared to radiotherapy alone for locally advanced head and neck cancer in Taiwan.