Ethiopia is one of the major origins of international migrants in Africa. Middle East countries are the prominent destinations for a significant number of migrants of Ethiopia. Regardless of the awareness of the risks and the abuses that happen to migrant workers living there, it is always the fortunate choice that many Ethiopians look up to. In this study, the determinants of international labor migration to the Middle East and its impact on households’ income were analyzed. A multi-stage random sampling technique was employed to select 346 (173 from migrant-sending households and 173 from non-migrant sending households) from Dessie zuria district and the data were analyzed using descriptive statistics, logit and Propensity Score Matching (PSM) models. Descriptive statistics such as mean, standard deviation, percentage, and frequency distribution were used to summarize the characteristics of the sampled households. The study used the PSM model to analyze the impacts of international migration on the income of migrant-sending households while the logit model was used to identify factors that determine households to migrate internationally. In the logit regression model a total of thirteen explanatory variables were included of which seven were significant. The significant variables were sex of household head (P = 0.004), family size (P= 0.020), livestock holding (P = 0.032), participation in non-farm activities (P = 0.06), cultivated land size (P = 0.001) network with migrants (P = 0.021) and peer/family pressure (0.015). Sex of the household head, livestock holding, participation in non-farm activities, and farm land size determine international migration negatively while family size, network with migrants, and peer/family pressure determine international migration positively. Using PSM (radius matching with a bandwidth of 0.1) it was found that international migration increased the annual income of migrant-sending households by 13079.51 birr over non-migrant households per year. The study concludes that there is a significant mean difference between the migrant-sending and non-migrant sending HHs in terms of income. The sensitivity analysis result showed that the impact estimates on significant outcome variable were insensitive to unobserved selection bias. Based on the findings there is a need to use family planning to control birth, creating non-farm employment opportunities, using agricultural intensification and diversification, enhancing access to information to reduce exaggerated and misleading information about the destination area