An alternating hot and cold therapy apparatus that applies alternating heat and cold to a pain affected area. The apparatus includes a housing, a therapy pad, and a flexible hose connecting the housing to the therapy pad. The housing contains a fluid reservoir and hydraulic pump in fluid communication with the reservoir, a fluid line connected to the pump, a programmable controller operably connected to the pump, a timer for providing time data to the controller, a cooling means to cool the fluid, a power source to supply power to the controller and pump, and a conductor from the power source to the therapy pad. The therapy pad includes a plurality of thermoelectric chips that generate a temperature differential in response to an electric current. The flexible hose carries the fluid line and conductor to the therapy pad where the fluid line and conductor wind through the therapy pad, contacting each of the thermoelectric chips. In cooling mode, an electric current flows through the thermoelectric chips causing one side to cool and the other to warm. The apparatus circulates fluid through the therapy pad to dissipate heat from the warm side. In heating mode an electric current is applied to the thermoelectric chips, but circulating fluid is turned off, allowing heat to build up in the chips.
