Cluster farming practice is importance to increase wheat productivity, the Ethiopian government has implemented a cluster farming system for high-potential agricultural commodities to address this issue and increase crop output while reducing poverty and ensuring food security. The objective of this study was to analyze the impact of cluster farming on households’ food security and productivity: The case of wheat production in Dabat district. Data was collected from 382 households using a multi-stage sampling technique from three sample kebeles in the Dabat district. Primary and secondary data were used for the study. A binary probit model and an endogenous switching regression (ESR) model were employed to analyze determinants of wheat cluster farming participation and its’ impact on food security and productivity respectively. The Probit model result shows that household size, membership in a cooperative, frequency of extension contact, sex of the household head, total land size holding, and farm experience significantly and positively affected participation in wheat cluster farming. The age of the household head and distance from the nearest market affected significantly and negatively participation in wheat cluster farming. The ESR model result shows households’ dietary diversity (HDDS), and food consumption score (FCS) of participants increased by 1.205, and 3.25 points, and the productivity of participants increased by 9.35 qt/ha due to participating in wheat cluster farming respectively. The result showed that wheat cluster farming is the main farming system to improve households’ food security and productivity. Policymakers, extension, agents, woreda, and kebel level agricultural offices should consider, the improvement of cluster farming practices by providing extension and training to serve the findings of the study and come up with better approaches and solutions to improve the participation of wheat cluster farming.