The handloom and textile sector provides an opportunity for income generation and self-reliance for many Yemenis and especially vulnerable women. This value chain study looks at the market actors in eight districts in Hajjah, Hodeida, Lahj, Abyan, and Taiz. The study objectives were to identify the current challenges and opportunities among the value chain actors in these targeted locations. The study is to inform Enhanced Rural Resilience in Yemen (ERRY II) programming and assist in identifying areas for improving the value chain. The study analysis started in December 2019 and with the arrival of the COVID-19 pandemic, opportunities were found to provide insight into the potential impact of the virus crisis on the sectors.