This report examines the health data from the second wave of the NIDS with a view to assessing the strengths and weakness of the data and highlighting the potential of the NIDS panel for the analysis of the relationship between health status and socio-economic status in South Africa. We begin by investigating associations between health and changes in the panel composition. We then examine data quality both within and between the waves, focussing on item non-response within waves and data consistency between waves. The final section examines changes in nutritional status between the waves of the panel. The analyses in this report are descriptive, preliminary and very much intended to illustrate the potential of the NIDS panel for furthering our understanding of the links between health and socio-economic status.