Arresting the decline of mangrove forests and mainstreaming people‟s participation in their management provided the rationale for community-based mangrove rehabilitation in the Philippines. Mangrove rehabilitation aims to re-establish habitat and functions that have been lost. In the context of coastal resource management, the risk that typhoons could alter socioeconomic and institutional goals of communitybased mangrove rehabilitation and the dearth of information on impacts of typhoon on such goals and combined income-asset shocks on households presents a great challenge. This paper analyzed the economic effects of typhoon and its impact on community-based mangrove rehabilitation community in the coastal municipality of Malinao, southeastern Luzon. Key informant interview, household and mangrove transect surveys were used in data gathering. Valuation of damaged crops and lost assets were used in quantifying direct economic effects. A time-one, time-two comparison technique was used in quantifying impacts. The results showed the direct damage on crops was highest in rice. The damage on physical assets was highest in fishing gears. The damage on livestock was highest in small animals. The cost of repair was highest for concrete houses, although native houses had the highest proportion of damage. Total direct damage cost valued at PhP 24.33 million justifies public investment in disaster risk management. Per capita damage cost at PhP 12,581 equivalent to 3-month household income shortfall can derail early recovery. The indirect social impacts increased access on social services as window of opportunities brought by the disaster event but are ad hoc in nature. The old mangrove forest population was very slightly impacted but the reforested mangrove was dramatically reduced. Most of the institutional performances in resource management and livelihood sustainability plans were negatively impacted. Livelihood projects with live production assets were more vulnerable and incurred heavy losses from typhoon. The typhoon resulted to very minimal gains on overall natural resource management goals posting slight positive changes on stakeholders influence on mangrove resource management, control over resources, collective decision-making, and knowledge. Coping mechanisms and implications for disaster mitigation and sustainable management were discussed.