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This study examines the determinants and challenges associated with rural poverty in Debark District, Ethiopia, in 2024. Using a mixed-methods approach that combines a semi-structured questionnaire, focus group discussions, and key informant interviews, the research identifies land scarcity, limited access to quality education, inadequate infrastructure, and low agricultural productivity as the principal drivers of poverty in the study area. Based on household survey data, the Foster, Greer, and Thorbecke (FGT) index indicates that approximately 26.5% of households live below the poverty line, with a depth of 4.5% and a severity of 3.5%. The probit regression indicates that rural households face structural and environmental barriers that limit their capacity to achieve sustainable livelihoods. Suggested solutions include strengthening policy support for smallholder farmers, investing in rural infrastructure, expanding educational opportunities, implementing targeted social protection programs, and implementing climate-smart farming practices such as using drought-resistant seeds, irrigation, and water harvesting to ensure stable agricultural production. By addressing these challenges comprehensively, the study emphasizes a call for integrated, context-specific, and gender-responsive policy interventions that strengthen livestock-based livelihoods, improve market-linked infrastructure, expand accessible and pro-poor credit and extension services, and address demographic pressures, particularly in the more vulnerable Dega highlands to minimize poverty in the Debark district, Ethiopia.