Poverty is one of the serious problems of the world. The problem is more severe in Africa. Eritrea is 16 years old young nation got independence from Ethiopia. The economy of the country was quite good during 1993-97. Later, however, Eritrea has been exposed numerous challenges such as drought, famines, war. As a result, the poverty has become more rampant in the country where more than 66 percent people live below poverty line. Some families live on remittances. The government has taken some poverty alleviation measures, the poverty did not come down due to lack of resources and the poor implementation of the program. An attempt is made in the paper to explore the incidence of poverty. It also provides the details of poverty surveys that are conducted since independence. The paper discusses various challenges of the poverty and provides some policy implications.