Targeting the Ultra-poor (TUP) is an integrated programme that combines the transfer of income-generating assets and multifaceted training on entrepreneurship, health-nutrition, and social awareness over a two-year period to graduate ultra-poor with mainstream poverty. While positive socioeconomic effects and spill-over effects are well-documented, this is the first paper to evaluate the effects of the programme on nutritional outcomes of under-5 children using data from a randomized control trial over a four-year period. We find notable improvements in nutritional outcomes of children in participating households. TUP is further seen to improve food-security, sanitation and duration of exclusive-breastfeeding. Nutrition status of children living in poor non-participant households are also positively affected though no effects were found on children from non-poor households. We conclude that programmes that combine asset transfer with multifaceted training such as TUP can have significant long-term positive health effects.