This is a discussion paper presented at the 6thOpen Forum on Poverty. The paper documents a presentation given by the author, a member of the Team Internal Evaluation, on approaches to Poverty Impact Monitoring. The presentation contains a general introduction to the GTZ evaluation system, some basic aspects of monitoring in general, and impact monitoring, in particular. After addressing the need to formulate consistent impact chains, identify clear and measurable indicators as well as a set of quantitative and qualitative methodologies, a picture primer on participatory impact monitoring was prepared This paper answers the question relating to monitoring is important for projects of technical cooperation and how it should be done. The presentation also represents an important learning cycle to show that monitoring must been seen as a capacity development activity, especially if it involves the major stakeholders and that it is used as a means to establish a common understanding of where the project stands and how it should continue. The presentation is intended to increase the understanding that more systematic impact monitoring can pave the way for a better assessment of poverty impacts and a subsequent improvement of project concepts towards poverty reduction.