This work aimed to construct Shanghai air quality health index (SAQHI) and to grade the air quality in Shanghai.Daily average concentrations of particulate matter with aerodynamic diameter less than 10 micrometer (PM(10)), SO(2) and NO(2) from 2001 to 2008 in the central urban areas of Shanghai were collected from Shanghai Environmental Monitoring Center. Contemporaneous data of daily average temperature and relative humidity were obtained from Shanghai Meteorological Bureau. Contemporaneous daily non-accidental mortality of registered residents in central urban areas of Shanghai were obtained from Shanghai Municipal CDC, respectively. Time-series analysis was conducted to estimate the association between air pollution and daily non-accidental mortality in the central urban areas of Shanghai. SAQHI was then established and applied to grade the air quality in Shanghai.On average, there were 122 non-accidental daily deaths in the central urban areas of Shanghai from 2001 to 2008. The contemporaneous daily average concentrations of PM(10), SO(2) and NO(2) for the same period were (97.3 ± 59.5), (50.1 ± 27.8) and (64.7 ± 23.9) µg/m(3), respectively. Daily average temperature was (17.7 ± 8.8)°C, and daily average relative humidity was (71.4 ± 11.8)%. Based on results of time series analysis, formula for SAQHI was SAQHI = 10/17× (exp (0.000 153×PM(10))-1+exp (0.000 662×NO(2))-1)×100. Air quality in Shanghai was graded according to SAQHI values as low health risk (SAQHI: 0 ∼ 3), moderate health risk (SAQHI: 4-6), high health risk (SAQHI: 7-10) and very high health risk (SAQHI: > 10).SAQHI could be applied in grading air quality in Shanghai, and reflect the effects of the overall air quality on health.