OBJECTIVES:  A 12-week daclatasvir plus sofosbuvir (DCV+SOF) regimen has recently been approved for the treatment of chronic hepatitis C virus genotype 3 infection, the second most prevalent of all genotype infections. The existing standard of care regimen options for the genotype 3 infection have comparatively longer (24-week) treatment period. The objective of this study was to conduct a cost-utility analysis to compare  the cost-effectiveness of the newly-approved combination therapy (DCV+SOF ) with sofosbuvir plus ribavarin (SOF+RBV) and PEGInterferon plus ribavirin (pINF+RBV) combination in patients infected with Hepatitis C genotype 3 from a payer’s perspective. METHODS: A Markov simulation model of chronic hepatitis C disease progression was developed. The Markov stages modeled included: fibrosis, compensated cirrhosis, decompensated cirrhosis, hepatocellular carcinoma, liver transplant, liver transplant in successive years and death.  The efficacies of the treatments were obtained from published clinical trials. Disease transition probabilities, drug costs and utilities associated with disease states were obtained from literature. All costs were adjusted to 2015 US dollars. The time horizon was set at 30 years. A discounting rate of 5% was applied. Multiple one-way sensitivity analyses were conducted to check for the robustness of the results. RESULTS: For treatment-naive patients, the quality-adjusted life years (QALYs) over a 30 year period were higher for SOF+RBV (10.82) and DCV+SOF (9.61) as compared to that of pINF+RBV (7.05). The cumulative cost was higher for SOF+RBV ($2,420,094) as compared to DCV+SOF ($1,705,308) and pINF+RBV ($422,752). Compared to pINF+RBV, the incremental cost-effectiveness ratios (ICERs) were $500,712 and $529,143 per QALY for DCV+SOF and SOF+RBV, respectively. Multiple one-way sensitivity analyses on discount rate, costs and effectiveness did not alter the final results. CONCLUSIONS: The newly approved therapy of DCV+SOF is a cost-effective alternative to established therapies of SOF+RBV and pINF+RBV in treating patients with hepatitis C virus genotype 3 infection.