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In a number of countries in Sub-Saharan Africa, widespread HIV infection has already translated into full-blown AIDS epidemics. The effects of this disaster on lives and livelihoods are dramatic, yet the economic consequences are difficult to measure using conventional approaches. Although past and current consequences of the epidemic, and responses to these, can be empirically studied, our knowledge of the overall socio-economic impact of HIVAIDS remains deficient. This study focuses on Malawi, as a representative case. It addresses both the short and long term impact of HIV/AIDS by bringing together and analysing findings from qualitative and quantitative studies on the spread and impact of the epidemic. The authors’ analysis provides a stronger foundation for conclusions of the consequences of HIV/AIDS and of appropriate policies to combat the deadly disease.