Abstract: OBJECTIVE To evaluate the cost-effectiveness of interferon-α1b(IFN-α1b) atomization combined with oseltamivir in treating pneumonia caused by influenza virus in children. METHODS In retrospective study, 193 children with influenza virus pneumonia for more than 48 h from December 2015 to May 2017 were selected and divided into two 2 groups:74 children in IFN-α1b group(IFN group) and 119 in IFN-α1b combined with oseltamivir group(combination group). From health care system's perspective, clinical and cost data were collected for pharmacoeconomic analyses. RESULTS The cough disappearing time, pulmonary rales disappearing time and average hospital stay of combination group were obviously shorter than those of IFN group, the difference was statistically significant(P<0.05). As the effective rate of two groups was all 100% and no drug adverse reaction were found in the hospital, cost-minimization analysis was adopted for economic evaluation. Medical costs was lower in IFN group for influenza A, A and B mixed virus pneumonia but it was lower in combination group for influenza B virus pneumonia. CONCLUSION IFN-α1b atomization is more economical for children with influenza A, A and B mixed virus pneumonia. IFN-α1b atomization combined with oseltamivir is more economical for children with influenza B virus pneumonia.