The study revealed the effect of Youth Empowerment Scheme on the poverty status of youth in Oyo State. Data for the study were obtained from ninety youth participants and non-participants of the scheme using multi-stage and snowball sampling techniques. The data were analyzed using descriptive statistics and test of difference. Results indicated that the average age of participants in the scheme was 29 years and 53.9% of the respondents were female. 51.7% of the respondents were married and 91.6% were functionally literate. Findings also revealed that the poverty status of youth in the study area is moderate due to the fact that majority (60.6%) of the respondents fall within the ?average? category. The result of the test of difference showed that there is no significant difference between the poverty status of participants and non-participants of the Youth Empowerment Scheme (t=0.99 and p=0.182). By implication, Youth Empowerment Scheme did not improve the poverty status of youth in the study area. Therefore, efforts should be made to realign the programme?s objectives through proper monitoring and evaluation at every stage to take corrective measures and improve on the programme.