This paper investigates output recovery from 134 episodes of currency crisis in 78 developing countries between 1975 and 1996. I examine which variables help to explain output recovery after such crises. The measure of output recovery is the real GDP growth rate as a deviation from its trend in the year following a currency crisis. A fixed effects panel regression model is estimated. The regression results indicate that investment, inflation, and short-term foreign debt before the crisis have negative effects on output recovery. Among the post-crisis variables, real money growth, real exchange depreciation, and exports contribute to fast recovery, but banking crisis and political instability have negative impacts on output recovery.