The effect of acoustic streaming on the attenuation of a high-intensity plane sound wave propagating in a gas containing a small concentration of monodisperse suspended droplets is considered. This work was undertaken to explain why some recent experiments on droplet-laden flows in pipes and nozzles indicated considerably larger attenuation than could be explained by existing theories. Acoustic streaming set up in the vicinity of a droplet by the oscillating flow due to the sound wave is analyzed by the method of matched asymptotic expansions. The resulting flow field is used to calculate the enhancement of heat and mass transfer from the droplet by convection. The effect on sound attenuation is determined by modifying existing theories of aerosol acoustics to account for the enhanced heat and mass transfer. The results indicate that the increased sound attenuation due to the proposed mechanism is significant only at droplet Reynolds numbers greater than I, which for droplets of 1 pm radius implies sound pressure levels of at least 160 dB. Also, owing to the tendency of small droplets to follow the oscillating flow, the effect is considerably reduced at frequencies below the characteristic frequency for velocity equilibration of a droplet, which is roughly 16 kHz for a 1 pm radius water droplet. It is concluded that other phenomena must be responsible for the anomalously high attenuation observed in the experiments.