This research report analyses the welfare effects of rural household coping strategies in post-war Mozambique. In addition, it considers appropriate government and donor policies to assist poor, war-affected farm households. The report discusses the expected theoretical effects of war on smallholder labour, asset, and social capital endowments and thus on household welfare. In addition, it considers the effects of war on land use and market-participation decisions by households and the impact of these choices on post-war household welfare.