This disclosure provides a method of treating a patient afflicted with multiple sclerosis or presenting a clinically isolated syndrome comprising administering to the patient laquinimod as an add-on therapy to or in combination with interferon-&bgr;. This invention also provides a package and a pharmaceutical composition comprising laquinimod and interferon-&bgr; for treating a patient afflicted with multiple sclerosis or presenting a clinically isolated syndrome. This disclosure also provides laquinimod for use as an add-on therapy or in combination with interferon-&bgr; in treating a patient afflicted with multiple sclerosis or presenting a clinically isolated syndrome. This disclosure further provides use of laquinimod and interferon-&bgr; in the preparation of a combination for treating a patient afflicted with multiple sclerosis or presenting a clinically isolated syndrome.