It is known that both specialization and diversification have their own advantages and dis advantages. Currently, diversification is more favorable for stability of farming system and sustainable agriculture. On the contrary, farmers in Amhara region are shifting from diversified agriculture to monoculture of eucalyptus woodlot plantation. Therefore, the main objective of this study was analyzing driving forces of farmers’ decision from diversified agriculture practice to monoculture of eucalyptus woodlot plantation in North Mecha district. Multi-stage sampling technique was employed for household survey and GIS for collection of geo-spatial data. Household survey of 166 farmers, key informants and focus group discussion were employed to collect primary data. Nineteen years of Landsat images, NDVI and on-screen digitizing were used to detect multi-temporal trends of eucalyptus plantation. Descriptive statistics, inferential statistics and binary logistic regression were used as data analysis methods. The result confirms that, the average area was changed 41%, 4% and 6%, from annual crop land, grazing land and perennial crop land to eucalyptus woodlot, respectively. The remote sensed information verified that eucalyptus plantation expanded from 3864ha to 6491ha in the years of 2000 and 2019, respectively. While, crop land declined from 5027.9ha to 3541ha. The major drivers of farmers to decide from diversified agriculture to monoculture of eucalyptus plantation were, competition from neighbor eucalyptus growers, demand low labor, high price of agricultural inputs and low selling price of crop products, low risk disease and pestand rise current market demand on domestic and export (Ethio-Sudan) on eucalyptus. Further different socioeconomic factors that contributed or hinder for eucalyptus expansion were: parcel number, family size and total land holding had positive significant whereas, frequency of extension contact, family labor and sex had negatively significant. The study concludes, due to the existence of the above driving forces & lack of awareness about eucalyptus plantation, the farmers’ plantation expansion continues. Therefore, it is recommended that the ministry of agriculture shall work on awareness creation about its side effect and introduction of high productive and market value agricultural technology. Key Words: Binary logistic regression, Driving forces, NDVI, North Mecha district, Trends