OBJECTIVES: Souvenaid® is a medical food - an enriched nutritional formula - that contains specific nutrients  reported to be deficient in patients with Alzheimer’s Disease (AD)  and that are important in cognitive function, synapse formation and function. Clinical studies demonstrate that  dietary management with Souvenaid® for 12 to 24 weeks results in a significant improvement in memory in patients with early AD. This study aims to estimate the budget impact of Souvenaid® for the dietary management of mild AD according to SUS perspective.  METHODS: An age related incidence of AD approach was used. Population size, according to different age categories, was derived from Brazilian statistics (IBGE) and combined to estimate the number of patients per age stratum. Average cost of AD was derived from a 7-state Markov model developed to estimate the effect of Souvenaid® for mild AD versus no dietary management (NDM) of mild AD and combined with demographic data in each age stratum. Only direct costs, obtained from a public hospital in Brazil, were considered. The difference between Souvenaid® group and NDM was the 5-year budget impact estimated for SUS. RESULTS: Considering a market penetration of  10%, 13%, 15%, 17% and 20% each year, the estimated number of patients under Souvenaid® treatment is  11.002,  15.733, 19.969, 24.894 and 32.216, respectively, for years 1-5.  Compared to NDM, the inclusion of Souvenaid® in the protocol of mild AD shows a potential budget impact of approximately Brz3,9 million (US$1,8 million) for 5 consecutive years.   CONCLUSIONS: The use of Souvenaid®, a new approach in the management of mild AD, can benefit approximately 100.000 patients with AD in 5 years and it is estimated to have a relatively small budget impact to SUS, since the projections of cost of disease for the same period are Brz154 million and potential budget impact of approximately Brz3,9 million.