Educational underachievement is a big problem in all schools, but it is especially prevalent in poverty stricken areas. The main objective of this research was to investigate the possible reasons for, consequences of and strategies to address the problem of educational underachievement in poverty stricken areas. The research conducted was based on the interpretive paradigm and a qualitative approach was used to gather data. A case study approach was used as a research design. The data collection methods were questionnaires, interviews and observations. The study found that the home conditions, individual factors, family and psychological factors are the main reasons for academic underachievement. The main consequences of academic underachievement were found to be unemployment, behavioural problems, a negative self-perception, high failure rates, high drop-out rates and teenage pregnancies. The main strategies to address the problem which the study revealed are: teachers familiarising themselves with the home conditions of the child, addressing the problem of overcrowding, and poverty, involving the parents in the education of their children, enhancing the self-esteem of learners, improving teaching, implementing cooperative learning and providing study facilities for these learners at the school after hours.
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