OBJECTIVES: The worldwide incidence of melanoma is increasing rapidly. Two chemotherapy regimens are used for treatment of Malignant Melanoma: single agent intravenous Dacarbazine (DTIC) and oral Temozolomide (TMZ). TMZ has greater cost in Iran so we aimed to do an economic evaluation, to evaluate the comparative value of treatment of two drugs. METHODS:  To compare the efficacy of these two drugs, a systematic review and meta-analysis were conducted and published articles, comparing use of single agent Dacarbazine and Temozolomide in treatment of Malignant Melanoma were reviewed. For this purpose, Pubmed, Scopous, Web of Science and Cochrane Central Register of Controlled Trials were searched and the search terms were: “Dacarbazine” and “Temozolomide” and “Malignant Melanoma”. Data were collected from inception to 2012. “Response to treatment” includes:” complete response (CR)”,” partial response (PR)” and “stable disease (SD)” was the key outcome of interest. The direct cost (drug and administrative procedures costs) was collected from health provider centers. RESULTS: The meta-analysis included 3 RCTS and involved 1314 patients with malignant melanoma. Approximately half of them were allocated to the TMZ arm and half to the DTIC arm. Risk differences for CR was -0.01, for PR was +0.03 and for SD was +0.01. Average cost for one cycle of treatment with TMZ is $1957 and for DTIC is $90 in Iran. For CR based on economic evaluation grid, TMZ treatment is dominated. The incremental CE ratio for PR is $62,233 and ICER for SD is $186,700 respectively. CONCLUSIONS: Considering health outcomes of CR, PR and SD, Temozolomide treatment for melanoma is not cost effective comparing to Dacarbazine in Iran. It should be mentioned that generic Dacarbazine is available in Iran but Temozolomide is provided as branded, and availability to generic form of Temozolomide may affect the results of this economic evaluations.