Kenya has one of the world’s worst HIV and AIDS epidemics. In 2011, an estimated 1.6 million people were living with HIV and nearly 62,000 people died from AIDS-related illnesses including Korogocho, the worst slum area with 14% HIV prevalence. Even though awareness of HIV and AIDS in Kenya is high, many people living with the virus still face stigma and discrimination. Studies have shown that although people are aware of the basic facts about HIV and AIDS, many do not have the more in-depth knowledge that address issues of stigma. Especially social stigma of HIV to women is an urgent issue in Kenya. Especially women with HIV suffered from stigma and discrimination to break themselves down. Their severe depression and psychological trauma is the most significant cause of their deprived quality of life. Kenya women have been exposed to intense and ongoing trauma and depression since diagnosis of HIV/AIDS. Among 122 women living with HIV/AIDS in Korogocho, Kenya, we examined the prevalence and severity of pre traumatic experience (PET), impact of event (IES-R), depression (CES-D), internal stigma (ISS), and resilience (RS). Results revealed a high prevalence in emotional impact of event in women living with HIV/AIDS (86%); 65.3% reported severe depression after diagnosis of HIV/AIDS. As expected, depression was significantly correlated with both impact of event and internal stigma. Hierarchical regression analyses revealed the association between IES-R score and CES-D scores persisted even after controlling for relevant demographic variables. The most difficulties on living with HIV/AIDS were emotional distress, physical health, social relationship, and financial problems. Implications for improving the psychological functioning and resilience of women living with HIV/AIDS are discussed.