This study was initiated with an overall objective of analyzing the effect of groundwater pollution on human health in Yadgir district of Karnataka. The study was conducted based on the primary data obtained from 150 sample households. The secondary data pertaining to nature and extent of groundwater pollution in India, Karnataka and in Yadgir district was analyzed. The study revealed that 63.48 per cent of the persons in polluted block were suffering from various kinds of diseases in comparison with 38.48 per cent in control block.  A stepwise regression analysis reveled that a household situated in polluted block is incurring an additional total cost of illness of ` 45,718.36 or 58 sick days per year compared to a household situated in control block. The education of the head of the household is negatively associated with total cost of illness per household per year. The groundwater pollution in Yadgir district is having detrimental effect on human health resulting in higher health damage cost. Therefore, there is a need to conduct frequent health checkups among the households periodically to mitigate / minimize its impact on human health. In addition, there is a need to conduct periodic awareness programmes through community engagement on the sources and risks of high arsenic exposure, including the intake of arsenic by crops through irrigation water and intake of arsenic into food through cooking water and the role of nutrition and antioxidants in preventing the onset of symptoms of arsenicosis.