Abstract. We provide a general procedure for computing the algebraic Ktheory of finitely generated virtually free groups. The procedure describes these groups in terms of (1) the algebraic K-theory of various finite subgroups, and (2) various Farrell Nil-groups. We illustrate the process by carrying out the computation for several interesting classes of examples. The first two classes serve as a check on the method, and show that our algorithm recovers results already existing in the literature. The last two classes of examples yield new computations.