With China's rapid economic development, environmental problems have become more and more serious. Particulate air pollution is terrible in cities with large and dense population. It may lead to adverse health effects and economic costs. In this study, we calculated the health effects of pollution caused by particulate matter with aerodynamic diameters less than 10 microm (PM(10)) in 111 Chinese cities in 2004 according to statistical data and epidemiological exposure-response functions. Using economic burden of disease analysis, an economic assessment of these health risks was also presented. In contrast to many previous studies that have examined individual cities, this study covered most large and medium-sized cities in China, which accounted for more than 70% gross domestic product (GDP) of China in 2004. The total economic cost caused by PM(10) pollution was estimated as approximately USD 29,178.7 million. Mega cities such as Beijing, Shanghai, and Tianjin contribute relatively more to the total costs. The results will help policy makers in formulating more effective countermeasures and increasing public awareness to enhance environmental protection.