Malt barley is an important cash crop in terms of the lives and livelihood of a farm household, its production adoption has shown an increase both in the area and in production in the study area but not as expected. This study was carried out to know the determinants adoption of malt barley production and its impact on farm households’ livelihood in Basona Worna District. The primary data was gathered from a field survey through a structured questionnaire. A total of 347 households were considered, of which 50.4% of malt barley adopters and the rest 49.6% of non-malt barley adopters. Descriptive statistics, inferential statistics, and econometric models were used to analyze the data collected. Binary probit and endogenous switching regression (ESR) model were employed. Results of probit model analysis showed that educational level of household head, land holing/farm size, Number of oxen owned, training and access to credit had a significant positive ef ect on farm household adoption of malt barley production. Whereas distance to extension service and distance to the nearest market center had to af ect malt barley production adoption negatively and significantly. The ESR model result shows, the FOODCONEXP per AEU and the NONFOODCONEXP per AEU increase by 3718.47 ETB and 237.93 ETB for adopters due to adopting malt barley production. For non-adopters of malt barley production, FOODCONEXP per AEU and NONFOODCONEXP per AEU could be increased by 66 ETB and 47.25 ETB if they had adopted malt barley production. The transitional heterogeneity ef ect is positive for both FOODCONEXP per AEU and NONFOOCONEXP per AEU. This implies that the impact of malt barley production on households' livelihood measured by consumption expenditure is significantly greater for farmers who actually did adopt compared to those that did not adopt malt barley production. Therefore, policymakers and other concerned parties should give due attention to alleviate the problems hindering participation in malt barley production and improve the livelihood of