It was observed that malignant tumor cells are more sensitive than normal cells to heat. Hyperthermia is known to be cytotoxic at temperatures above 41 degrees C and selectively lethal to cancer cells. The aim of the present study was to evaluate the therapeutic efficacy of continuous wave Nd:Yag laser-induced hyperthermia in treatment of basal cell carcinoma (BCC). The study was performed between April 1995 and August 2000 on 37 patients with BCC selected from of the outpatients of the dermatology clinic of al-Minya University Hospital. Patients were treated with continuous-wave Nd:Yag laser hyperthermia at 6-week intervals (laser output power was 10 W, spot size 8 mm, and irradiation time up to 1 minute). Following this treatment, 36 patients (97.3 %) were completely cured. Within a follow-up period of 3-5 years only one recurrence was encountered (2.7 %). Continuous wave Nd:Yag laser-induced hyperthermia should be considered as an alternative treatment for BCC. This simple, bloodless, outpatient procedure showed excellent efficacy and cosmetic result with minimal complication.