We consider consistent, conservative-form, monotone nite di erence schemes for nonlinear convection-di usion equations in one space dimension. Since we allow the di usion term to be strongly degenerate, solutions can be discontinuous and are in general not uniquely determined by their data. Here we choose to work with weak solutions that belong to the BV (in space and time) class and, in addition, satisfy an entropy condition. A recent result of Wu and Yin 30] states that these so-called BV entropy weak solutions are unique. The class of equations under consideration is very large and contains, to mention only a few, the heat equation, the porous medium equation, the two phase ow equation and hyperbolic conservation laws. The di erence schemes are shown to converge to the unique BV entropy weak solution of the problem. In view of the classical theory for monotone di erence approximations of conservation laws, the main di culty in obtaining a similar convergence theory in the present context is to show that the approximations are L 1 Lipschitz continuous in the time variable (this is trivial for conservation laws). This continuity result is in turn intimately related to the regularity properties possessed by the (strongly degenerate) discrete di usion term. We provide the necessary regularity estimates on the di usion term by deriving and carefully analysing a linear di erence equation satis ed by the numerical ux of the di erence schemes. x1. Introduction. We are interested in monotone nite di erence approximations of nonlinear, possibly strongly degenerate, convection-di usion problems of form (1) (@ t u + @ x f(u) = @ x (k(u)@ x u); (x; t) 2 Q T R h0; Ti ; k(u) 0; u(x; 0) = u 0 (x); where the initial condition u 0 (x), the convection ux f(u) and the di usion ux k(u) 0 are given, su ciently regular functions. Convection-di usion equations arise in a variety of applications, among others turbulence, tra c ow, nancial modelling, front propagation, two phase ow in oil reservoirs, and in models describing certain sedimentation processes. When (1) is non-degenerate, i.e., k(u) > 0, it is well known that (1) admits a unique classical solution 21]. This contrasts with the degenerate case where k(u) may vanish for some values of u. A simple example of a degenerate equation is the porous medium equation, (2) @ t u = @ x (u m) ; m > 1; 1991 Mathematics Subject Classi cation. 65M12, 35K65, 35L65. Key words and phrases. Degenerate convection-di usion equations, BV solutions, entropy condition, monotone nite di erence schemes, convergence. Karlsen has been supported by VISTA, a research cooperation between the Norwegian Academy of Science and Letters and Den norske stats oljeselskap a.s. (Statoil).