The paper examines the situation of Yemen vis-à-vis the Millennium Development Goal (MDG) indicators. The analysis by indicator looks at trends and prospects for reaching the MDG indicator targets. The paper provides a look at the policy and institutional changes required to increase the likelihood of meeting these targets. The conclusions suggest that primary education targets are the most likely targets to be met and that poverty reduction targets may be partially met. As for maternal and child health targets, at present they are unlikely to be met, as are targets for access to safe drinking water in rural areas. Even for the most promising indicators, any progress towards achieving the MDGs will require significant institutional and policy reforms by Government and continued, coordinated support from donors. Another necessity for achieving the targets is political stability and relative peace.