Ethiopia faces large and growing numbers of child household heads, mainly due to AIDS-related parental deaths. Many of them are vulnerable to abuse and are forced to look after themselves and their siblings, drop out of school and find work. This study assessed to identify the psycho-social problem of child headed family which includes the emotional problems, the social situations, the economic burden, the health problems, and the coping strategy of child head affected by HIV/AIDS. Findings of study reveal the severe and traumatic conditions in which the child household heads and their siblings are living. Economic insecurity is the prime concern for them and also they face tremendous psychological (emotional) and social challenges as they live with the constant memory of their deceased parents. To improve their livelihood, immediate material assistance and developing clear strategies that independently address the practical and strategic needs of these households.