Income disparity is a prevalent economic phenomenon and a key area of study in the field of income distribution. Understanding the growth of income distribution inequality in a nation or region, reducing the gap in income distribution, enhancing the income distribution system, and eradicating poverty all depend on the research on income inequality. The primary topics of discussion and analysis in this chapter are poverty and income inequality. Before proposing appropriate policy measures to address income disparity and poverty, the theoretical underpinnings of these issues are highlighted, followed by a measurement and characterization of income inequality and poverty. The objectives of this chapter are as follows: 1. To master the measurement method, representation, and theoretical basis of income inequality and poverty. 2. To understand policies to address income inequality and poverty.