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The health sector in Mozambique has made significant progress in terms of increasing coverage of services. However, health remains a major concern in the area of poverty reduction. The study describes the health status of the population, especially of the poor, and how the sector responds to the needs. Huge inequalities continue to exist with regards to resource allocation, deployment of staff and availability of services among various geographic areas, between the urban and rural population, and between the poor and the non-poor. The study builds upon the existing studies on health and consolidates the sector knowledge. Based on the analysis, the study makes various recommendations on how the health sector reforms can be made more pro-poor by focusing on certain interventions, by targeting certain areas and population groups, by designing new delivery models that would bring the services closer to the population, and by improving financial management to serve the poor more effectively.