Effective post-war reconstruction is crucial for achieving sustainable development. This study assesses the impact of war on manufacturing firms in Mekelle, Tigray; estimates reconstruction needs; and identifies priority areas for post-war recovery in the sector. Using secondary data from 726 small, medium, and large manufacturing firms, the analysis employed descriptive statistics, the replacement cost approach, and the World Bank’s damage, loss, and needs assessment tool. Results show that the war severely disrupted firm performance, reducing sales revenue by 97%, profit and loan repayment by 100%, and employment by 91.4%. Total damages were valued at over US$1.4 billion, with reconstruction needs estimated at US$1.7 billion. Key recovery priorities include: (i) targeted post-war policies and programs, (ii) recovery packages with free or low-interest working capital, (iii) duty-free imports, (iv) improved access to foreign currency, and (v) income tax waivers and grace periods.