Background: The introduction of highly active antiretroviral therapy (HAART) has led to significant reduction in acquired immune deficiency syndrome (AIDS)-related morbidity and mortality. Unfortunately, up to 25% of patients discontinue their initial HAART regimen because of treatment failure, toxic effects or noncompliance within the first few months of therapy. Aims: To assess adverse effects of antiretroviral therapy and its adherence in HIV infected patients in a resource-restricted setting in India. Methods: A group of 400 HIV infected patients, attending class-A ART clinic attached to tertiary care hospital in Mumbai, was studied retrospectively over the period of one year from the initiation of ART to observe and assess adverse effects of ART. Data was obtained from patient treatment record sheet after due permission from ART officer. Results: Most common adverse effect was Anemia(17.5%). Baseline CD4 count of less than or equal to 200cells/mm(3) was found to be significantly associated with the incidence of adverse effects (p value < 0.001). Conclusion: As HAART is only option for HIV/AIDS till date; to optimize adherence and thus, efficacy of ART, clinicians must focus on preventing adverse effects whenever possible, promoting the early recognition and reversal of potentially serious adverse effects, and reducing the potential for adverse drug interactions. Copyright (C) 2015, Indian Journal of Medical Specialities. Published by Reed Elsevier India Pvt. Ltd. All rights reserved.