Community-based ecotourism has been recognized as an important factor for households’ livelihood. Rural households normally have a problem of getting access to participate in ecotourism activities and making family better livelihood status in rural areas. The objective of this study is to assess community-based ecotourism as a means of household livelihood evidence from Abune Yoseph Zigit Abuhay Gariya Community Conservation Area, Ethiopia. The specific objectives of the study also to examine the household level of participation in community-based ecotourism activities, to identify the determinants of household participation in community-based ecotourism, and to analyze the impact of community-based ecotourism on household income, saving, and expenses. A purposive sampling technique and stratified random sampling were employed to select 204 sample households from four kebeles. Data were collected using structured interview and Key informant interview. To realize the research objectives both descriptive and econometric models employed using SPSS version 25 and STATA version 14. Regarding factors determining household participation in the ecotourism sector, binary logistic regression results revealed that, among 12 explanatory variables, 5 of them influenced household participation. These variables are the age of respondents, gender, access to training, annual income, and distance to park, whereas, there is no significant difference in the participation household on household size, farmland size, number of equine, education level, access to information, utilization of credit and foreign language. The finding shows that demographic characteristics, institutional characteristics, and economic characteristics are the most crucial variables that determine participation in CBET. Therefore, to improve institutional and economic factors, the local ecotourism association and culture and tourism, and community conservation area offices tend to their best. Furthermore, the impact of community-based ecotourism on the household livelihood; propensity score matching result revealed that households participating in ecotourism perceive more economic benefits on annual income, annual saving, and health and educational expenses. Therefore, the woreda culture and tourism office and community conservation area office should design well sound strategy to incorporate non-participants to diversify their livelihood in addition to agriculture