In Sen's capability view of poverty, wellbeing is threatened by both deficits of wealth and deficits of individual agency. Sen further predicts that "unfreedom," or low levels of agency will suppress the wellbeing effects of higher levels of wealth. The current paper extends Sen's view to include a condition, labeled "frustrated freedom," in which relatively higher levels of agency can heighten the poverty effects of relatively low levels of material wealth. Applying data from a large scale population study of female heads of household in rural Mozambique, the paper empirically tests Sen's view and the proposed extension. As predicted, agency is found to moderate the relationship between agency, wealth, and wellbeing, uncovering evidence of both unfreedom and frustrated freedom in the population. Further research into the complex dynamics of wellbeing and poverty are called for by the authors.