The impetus for this research arises from a deep recognition of the ongoing vulnerability of rural households in Abergele Woreda, Waghimra Zone—one of the area most severely affected by drought. So, this study examined livelihoods and drought coping strategies of rural households in drought affected areas, Abergele Woreda, Waghimra Zone. To address the stated objective, mixed research method particularly concurrent triangulation approach was employed. Primary data were collected through survey questionnaire, focus group discussions, key informant interview and observation, while secondary data has been used from documents and reports from different offices. The collected data were analyzed using descriptive and inferential statistics. The findings of this study revealed that drought has had a significant impact on the livelihoods of households in the study area. Farming is the main livelihood strategy, with livestock husbandry playing a particularly dominant role. To support their livelihoods, about 52.6% of the sampled households engage in non- or off-farm activities alongside farming. Among these, the most common activities include seasonal migration, petty trading, and irrigation. In the study area, key community assets include the labor force, water resources, livestock, and community-based associations. However, households face limited access to essential services such as transportation, markets, climate information, credit, remittances, and savings. These limitations have negatively impacted livelihoods and their ability to cope effectively with livelihood challenges. The main coping strategies employed by households in response to drought include selling goats and sheep, relying on relief food, altering consumption patterns, seasonal migration and selling oxen and other productive assets. The results of the chi- square test revealed that gender, household size, education, access to transportation, availability of climate information, market distance, and credit access were significantly associated with livelihood diversification. Finally, it is recommended that the households should focus on developing drought-tolerant crops, expanding irrigation and trading to build resilient and sustainable livelihoods. Additionally, both governmental and non-governmental organizations should prioritize development programs like building infrastructure, irrigation canals and shifting short-term emergency food aid to long-term solutions