Poultry production plays an important role in the human economy, supplying food, creating wealth through job creation for the booming population. In the study area (South Gonder zone of Amhara region), livestock, and fishery department disseminated various chicken breeds solely and in collaboration with different projects. Dera is one amongst the poultry producing districts in South Gonder Zone. However, the status of exotic poultry breeds distributed and disseminated towards the rural farmers by the nearby institutions and the impact of exotic poultry breeds adoption in enhancing livelihood outcomes on farmer households not adequately studied in Dera district. This study aimed at analyzing the factors that affect adoption decision and the intensity of adopting exotic poultry breeds at household level; and to evaluate the impact of exotic poultry breeds adoption on households’ livelihood in Dera district. Data was collected through interviews from a sample of 189 households’ selected using multi-stage sampling. A double hurdle model was used to analyze the level and intensity of adoption of exotic poultry breeds. The results showed that family size, participation in cooperatives, livestock holding, extension services, farm size, off farm activity and experience of rearing poultry influenced the decision to adopt exotic poultry breeds positively whereas distance to the nearest market has negative significant influence. The intensity of adopting exotic poultry technology, on the other hand influenced positively and significantly by household marital status, annual income gained from exotic poultry production and experience of poultry keeping whereas annual expenditure for exotic poultry production and sex of the household head influenced negatively and significantly intensity of adoption. Endogenous Switching Regression (ESR) approach was used to analyze the impact of adopting exotic poultry on household farmers’ livelihood. Results showed that the households that adopt exotic poultry breeds annual income would decline by 5465.48 ETB had they decided not to adopt. In the counterfactual case, the annual income would have increased by 3008.63 ETB amount had they decided to adopt the improved breed significant at 1% level of significance. Similarly, the consumption expenditure would have declined by 5985.48 ETB for adopting households had they decided not to adopt exotic poultry breed. In counterfactual, households that did not adopt the breed would gain 2520.22 ETB to cover their consumption expenditure had they decided to adopt exotic poultry breeds. From the Full Information Maximum likelihood ESR –based treatment effect, results revealed that adoption of exotic poultry breeds had positive income and consumption expenditure impact on both adopters and non-adopters of the technologies. That means as the farmers adopt and practice the exotic poultry breeds, their lives in case of cash income and consumption expenditure improved indicating positive impact of exotic poultry breeds adoption on the livelihood of smallholder farmers. Thus, the impact of exotic poultry breed technology on the welfare of smallholder farmers was higher compared to those local chicken keepers. More programs targeting women should be designed and supported by both the higher and district level decision makers. Poultry production is an enterprise that is more important for and associated with women as compared to men. Hence, due attention should be given to female farmers to economically empower them.