Equivalent effect has been widely discussed in Translation Studies. It means that the effect produced by a translation on its audience should be as close as possible to the effect the original had on the recipients in the source language. The influential Western theorist Eugene A. Nida proposes that “dynamic equivalence” provides a basis for the principle. This article discusses the principle of equivalent effect, including propositions before Nida, and comments by Western and Chinese translation theorists. It presents limitations of equivalent effect and the author’s viewpoint on the theory.