This study is conducted in 3 weredas of Wag Himra Nationality Administration (Sekota, Zequala and Gazgibla) using cross sectional data generated from randomly selected 396-households. Some food related and food specific aids have been distributed for more than 40 years in response to the recurrent droughts that has been threatening thousands of people in the study area. Despite huge effort by government and humanitarians, the demand for food aid is increasing from time to time. The objective of this study is therefore, to investigate the food security status of rural households and determinants of food security with main emphasis on the link between donor driven aid and household food security. Food security status of households was estimated in daily calorie acquisition and multidimensional measure of food security using multivariate statistical procedure particularly principal component analysis. Comparison of two food security measures and inferential statistics of food security across socio economic and bio physical factors were conducted for further insight. The local food poverty line was also established and FGT measure of food poverty was analyzed for further insight. Two econometric models of instrumental variable (two stage list square) regression were employed using both calorie acquisition and multidimensional food security measures as a dependent variable. Food security status of the sample households in this study was found to be 71%, and 70% food secure in calorie acquisition and multidimensional food security measures, respectively. Out of the total, 7%, 21%, 43%, 28% of households were found to be food secure, moderately secure, moderately insecure, severely food insecure, respectively. Both models of food security measure estimate 75% similar result and only 17% of households were found food secure in both models of food security. The inferential statistics result showed female headed households low land area and PSNP program participants were found the most deprived segments of the society. The local food poverty line was also identified and found to be an annual birr 1814,which is equivalent with 2200kcal/day/AE, and the FGT estimate of food poverty showed 70.7% of household were found to live below the local food poverty line and the food poverty gap index and inequality were found 15%, 4.6%, respectively. The decomposition of food poverty estimate showed similarly female headed households, low land areas, PSNP program participants were found seriously deprived segments as compared to their counter parts. The econometric results showed, age and sex of household head, educational status, total livestock holding, number of oxen and farm size was found to be significant and positively affect food security. However family size and family structure were found significant and negatively affect food security status of households. Among aid related variables, grant aid and commodity aids were found significant and positively affect food security. However the amount of food aid was found significant and positively affect current consumption and negatively affect multidimensional food security. However, both econometric models estimated similar result, repeated exposure of food aid negatively affect household food security. Finally, food security status of households was found in critical condition and incompatible with the effort made. Development oriented aids positively affect food security while the effect of repeated food aid distribution was negative, implying it could be a potential cause of moral hazard and dependency. Therefore, the way forward has to focus on policy priority for disadvantaged groups, and judicious combination of relief and development aids. The proper implementation of the already indorsed gender sensitive and youth centered development packages, and also appropriate food aid program implementation the already indorsed policies shall be focused. Key words: food aid, food security, multidimensional, food poverty, PCA, FGT, 2sls, WagHimra