This study examines the impact of artificial reefs on fisher households’ income in Terengganu, Malaysia. Data obtained from a survey involving 312 respondents in three contiguous districts indicate that respondents fishing near AR areas are found to have a higher monthly catch value as compared to those fishing in non-AR areas. Regression models also indicate that fishing in AR areas help reduce vessel operation costs. There is also significant difference in catch value between fishers with outboard-powered and inboard-powered vessels. Fishers operating an inboard-powered vessel obtained an average of RM5,935 per month compared to RM3,126 for fishers who use outboard-powered vessels. It was also found that fishers with inboard-powered vessels are less dependent on ARs as they are able to fish further into the sea.