Over the past 20 years, Ethiopia has made significant economic growth. Yet statistics reveal that the agriculture sector has the lowest growth in the nation, which is caused by a lack of investment in agricultural technology, reliance on rainfall, lack of availability and poor quality of seeds and fertilizers, as well as a lack of adequate rules and guidelines. As a result, farm households in rural areas have very poor incomes. A quasi-experimental method is employed to examine the impacts of participating in avocado production on smallholder farmers‟ income in North Mecha Woreda of Amhara Regional State of Ethiopia. In 2022, a household-level survey is carried out on a sample of 360 households, 180 of which were treated as participating farmers in avocado production while the other 180 served as the control group. A logit model is also used to determine the variables affecting smallholder farmers' participation in avocado production. The propensity score matching (PSM) analysis results revealed that participating in avocado production has a significant positive impact on smallholder farmers‟ total income. That is, participating in avocado production has significantly increased the income of the treated group by 22.8% as compared to the control group. In accordance with the logit model analysis results, while market distance had a negative impact on farmers' participation in avocado production, better access to irrigation, extension services, training, avocado seedlings, large livestock holdings, the size of cultivable land, and the educational level of the household head had a positive impact. This study finding suggests that scaling up the practices of avocado producers in the Amhara region in particular and in Ethiopia at large has a significant role in enhancing the total income of the smallholder farmers. Thus, concerns should be given to the possible influencing factors that affect the participation of smallholder farmers in avocado production.