Asbestos-related diseases constitute a major occupational health problem, especially in underdeveloped countries. The objective our study was to try to put a national scheme suitable for evaluation of disability in asbestos-related diseases due to occupational or environmental exposure. This study was conducted on 54 subjects (38 workers and 16 residents). It was found that the two groups significantly differed as regards linear opacities in chest radiographs, FVC, TGV, RV and TLC. The study included 26 non-smokers and 28 smokers. These two groups significantly differed as regards cough, expectoration, rhonchi, FEV1/FVC, FEF 25-75%, PaCO2 at rest, FC, RR at rest and at maximal exercise. A statistically significant difference was found between clinically positive and clinically negative subjects as regards FVC, FEV1 and FEV1/FVC. Also, a statistically significant difference was found between X-ray positive and X-ray negative subjects as regards FEV1, FEV1/FVC. The Egyptian scheme for impairment rating in asbestosis differed significantly from the AMA guides for assessment of respiratory system impairment. It was concluded that using pulmonary functions in evaluation of impairment in asbestos-related diseases gives the patient higher percent of whole body impairment, and it was recommended to add the parameters of pulmonary functions to the Egyptian scheme for evaluation of asbestos-related diseases.