A predator–prey model with logistic growth in prey is modified by introducing an SIS parasite infection in the prey. We have studied the combined effect of environmental toxicant and disease on prey–predator system. It is assumed in this paper that the environmental toxicant affects both prey and predator population and the infected prey is assumed to be more vulnerable to the toxicant and predation compared to the sound prey individuals. Thresholds are identified which determine when system persists and disease remains endemic.