Using quality adjusted life year (QALY) as an evaluation measure of cost-effectiveness for assessing hepatitis B inoculation strategy in China, through the decision tree model. The result showed that for hepatitis B inoculation, priority should be given to neonates and infants aged 0-3 years; and the age of vaccination subjects be extended to, adults older than 25 yrs. The result also indicated: that the net cost for each QALY gained due to vaccination was very high, so that the ultimate control of hepatitis B epidemic not only depended on the development of highly effective and inexpensive vaccine, but also on the improvement of economic level and sanitary status.