Although remarkable progress has been made in improving health outcomes over the past decade, Malawi still faces challenges. The COVID-19 pandemic could reverse the gains in the health sector in Malawi. Due to the pandemic, there has been a reduction in the use of some key health outcomes mainly due to disruptions in the procurement and distribution of medicines and other medical commodities; and greater emphasis on COVID-19 as compared to other essential services. Financing of health services in Malawi is also likely to be affected by the COVID-19 pandemic. Given that the health sector is not fully funded and relies on substantial donor funding, this is a cause for concern. This policy brief discusses the current trends and strategies to improve efficiency and equity in health financing in Malawi, which could potentially improve health financing and contribute to universal health coverage.