This research has focused on assessing the impacts of Human ImmunodeficiencyrnVirus/Acquired Immune Deficiency Syndrome (HIV/AIDS) on poverty at household levellVithrnregard to issues related to challenges being faced by affected IlOuseholds and individuals. Arnsurvey lVas conducted Oil 100 households and 50 orphans, three focus group discussions, andrnilltervielVs lVith key informants from relevallt organizations ill two kebeles of the Addis Ketemarnsub-city. Emphasis lVas put 011 examillillg the nature of the problems the house/lOld facedrnwhell the breadwinner is ill/die. Thus changes in income and expenditure patterns, onfamilyrnstructure, amI coping strategies of households was analyzed.rnThe study has confirmed that the major problem of HIV/AIDS affected households whichrnaggravate their poverty was lose of income. The majorities of the victims are unemployed,rnsOllie stopped working because of illness amI some of the ullemployed revealed tlUlt they lVererndiscriminated ill some organizatiolls since they were asked a results of HIV test to be recruited.rnIn addition, most of the households do 1I0t have access to basic facilities such as housing andrnother relatell facilities like water and toilet with ill the dlVellillgs. As a result, householdsrnaffected by HIV/AIDS need access 1I0t only to care and support but also to the means tornmaintain an illcome and pursue alternative livelihoods.rnHIV/AIDS gellerated various types of households such as female headed, gralldmotherrnheaded, child headed, and dissolved households. Women are fOll/ul to be more vulnerable tornHIV/AIDS maillly due to social, economic and cultural influellces imposed 011 them. Sincernthey cannot work in many types of jobs like men, HIV positive 1V0mell go to charityrnorgallizations before being ill. 74.3 percent of the clients (If the specific NGO ill the study arearnarefoulld to be 1V0men. They are also foulld to be abused by their husballds to the extent thatrnthey were forced to make sexual intercourse against their lViIl by HIV positive husbands,rnbecome pregnant and give birth to HIV positive child.rnThe main copillg strategies used by HIV/AIDS affected households are searching assistancernfrom a charity organization, selling assets amI using previous savings, dispersing siblings,rnretllming to parellts' home, and using holy water. The majority of the affected householdsrncope with HIV by searching assistance from charity orgallization, though the support they getrnlVas not adequate to fU(fi1 even the basic needs. A significant number of households dispersedrnthe family member to various extended families such as grandmothers, aunts and uncles.rnBecause of lose of income, some lVidolVed women relurlled 10 parents' home lVith theirrnchi/dren.rnThe major problem of HIV/AIDS affected households and individuals is shortage of income,rnas a result of which they lack basic necessities. Thus it is recommended that the finaneialrnassistance flow in the name of HIV/AIDS should properly reach the affected and infectedrnindividuals and households, and Antiretroviral drugs should be made available so that therninfected individuals get them easily.rnKey Words: Impact, Poverty, HIVIAIDS, HOl/sehold, [ncome, Expenditure, Coping strategy