Despite international labor conventions and local government legislations, child labor in Ethiopia is found to some extent in all economic sectors particularly in the agricultural sector. The unsafe working conditions of the environment exposed children for physical injuries and health complexity. The general objective of this study was to explore sitiotions of children engaging in khat harvesting in the rural kebeles of Bahir Dar Zuriya Woreda focusing on circumstances contributing for engagement of children in harvesting khat, problems faced by children and their coping strategies. The study employed sequential exploratory mixed research approach. Qualitative data were collected from 39 purposively selected study participants (children, community representatives, and government sector office experts). Qualitative data were generated through in-depth interview, FGD and key-informant interview. Based on the qualitative findings closed ended questionnaires were developed and filled by 150 respondents who were selected by employing multistage random sampling and availability sampling techniques. The qualitative and quantitative data were analyzed thematically and descriptive statistics techniques respectively. Findings of the study revealed that children under the age of 14 years were engaged in khat harvesting which is below the legal minimum age. The low economic status of children’s parents, the availability of extra time, family encouragement and lack of awareness on child rights and protection issues were the reason that forced children to become child laborers and induced them to combine work and schooling. Besides, the quantitative findings also revealed that 91.3 %( 137) of respondents were encouraged by their immediate families to engaged in khat harvesting and 8.7 %( 13) respondents only discouraged. In addition, 86.7% (130) respondent engaged in harvesting khat to overcome their major problem of fulfilling educational materials and to support their families. Children in the study area also worked for longer hours (5 hours in half day) under unsafe working conditions and the environment which exposed children for physical injuries, scorching sun, chemicals and health complexity; which is from the total respondents of 150, 20.7% (31) encountered eye irritation, 83.3% (125) encountered skin irritation, 94.7% (142) encountered headache, 95.3% (143) encountered stomach problem, 9.3% (14) respiratory problem, 26.7% (40) encountered dog beating, 5.3% (8) snake beating, stiffness 57.3% (86) and 94.7% (142) encountered tiredness. Thus, children who are engaged in khat harvesting exposed for bad working conditions and exploitative work. Therefore, it needs to raise awareness of the community and inclusive strategy