OBJECTIVES:  Use of biomass fuel for household cooking is one of the major sources of household air pollution. In low and middle income countries an improved stove has been introduced to control air pollution and reduce burden and economic burden of respiratory and other related illnesses. The objective of this paper is to estimate the cost of respiratory and other related illnesses in household that used traditional stove versus improved stove. METHODS: We collected data from 605 household ( 217 treated, 388 control) in Sindh and Punjab provinces in September 2014.We estimate cost of medical care for treatment of respiratory illnesses and eye illnesses in the women who use traditional stove (control) and improved stove (treated) group. Medical care costs include consultation charges, purchase of medicines, and laboratory/radiology charges. RESULTS: Yearly median medical care cost of treating respiratory illnesses and eye illnesses significantly lower in treated group (PKR 2000 and PKR 898.5 respectively) than in control groups (PKR 2027.5 and PKR 1000). In regression analysis the medical care cost of respiratory illnesses and eye illnesses were higher in the control group (PKR 446.66 (SE 5708) and PKR 965.91 (SE 2943.78) respectively) than in the treatment group. CONCLUSIONS: Improved stove are better in terms of fuel efficiency and in reducing the burden and economic burden of related illnesses. However we recommend further research in this area with larger sample and appropriate follow up to capture difference over time and across treated and control groups.