HIV/AIDS in Ethiopia is still results in exceptional levels of illness and death in the mature adult population. It has many social and economic impacts at the national level in general and household level in particular. The general objective of the study was therefore to assess the economic impact of HIV/AIDS on household's livelihood in the town of Gondar. Mixed research design was employed for the study. The sample size was determined by using censes method and a total of 64 households were selected. This is due to the fact that the total HIV victims in the selected kifle ketema were64 obtained ~ _from the kifle ketema 's administration office sampling frame. Both primary and secondary data sources were used to collect the necessary information. In addition focus group discussion, interview with key informants, direct observations were used to collect the necessary information. The collected data were systematically analyzed using C. qualitative and quantitative research methods. Percentages, frequencies and tables were used for data presentations. Paired t-test was employed'to judge the significance of the mean difference between housing conditions before and after HIV infection, job opportunities before and after training, income and expenditure patterns before and after HIV infection. The study revealed that there were strong relationships between housing conditions before and after HIV infection and income and expenditures to basic needs before and after HIV infection. The study has also confirmed that the major problem of Key words: Impact, HIV/AIDS, Household, Income, Expenditure, Coping strategy XI ,f HIV/AIDS affected households was loss of income . The majority of the households(70.3%) did not have access to basic facilities such as housing and other related facilities like water and toilet. The study found out that women's (67%) were more vulnerable to HIV/ AIDS than men's in the study area. The majority of the affected .... households cope their economic crises as a result of HIV by using previous saving • (26.6%) and Borrowing (20.3%). It was also indicated that lack of financial resources was the major factor that affect the coping ability of the respondents. Working hand in hand with the community, Government and NGOs as well as the proper allocation of raising Ju--f!f'J;r ~he intended purpose could alleviate the economic crise~ that brought because of HIV/AIDS in the study area in particular and the country in general.