The Village Saving and Loan Association model is widely recognized as a powerful tool for delivering financial services to the rural poor where formal financial services are limited. This study was undertaken in Libokemkem district to examine the role of village saving and loan associations on rural household’s empowerment. The study specifically aims to assess the economic, social and cultural role of village saving and loan associations, to assess the role of village saving loan associations on rural household’s empowerment and to analyze determinants of rural household’s empowerment through village saving loan association. In the study area productive safety net households had been suffered from poor saving practices and lives of these people were highly poor, the establishment of village saving loan association as a turning point in the lives of the communities across areas because they are incapable access to actively participating in formal decision-making process and low loan access to participate in different income source activities. 126 households were selected using multi stage sampling technique followed by probability proportional to sample size. Both primary and secondary data were collected to address the objective of this study. The collected data were analyzed using descriptive and beta regression model. Six household empowerment indicators namely: information access, inclusion in decision making, authority on decision making, control over resource, influence local organization decision making and freedom of choice on action were used to evaluate the empowerment of households. The result indicated that the average household empowerment index of the respondents was 0.42 with standard deviation of 0.15. The model result indicated that educational status, access to financial institutions, participation in income generating activities, loan access and membership to Village Saving and Loan Association had statistically significant and positive relationship with household’s empowerment. On the other hand, market distance had statistically significant and negative effect on household empowerment. Therefore, an attempt to increase household’s empowerment through Village saving and Loan Association should give special attention to the existing significant variations of socioeconomic and institutional factors.