In countries like Ethiopia wherein religion is exorbitant, interfaith marriage is more of an exception than a norm. Despite the rise of interfaith marriages both at global and national levels, studies on interfaith families are scant. This study explored the lives of interfaith families focusing on reasons why couples entered into interfaith marriages, interactions of families of interfaith marriage, challenges of interfaith marriage, and coping mechanisms in Bahir Dar City Administration. This study employed qualitative approach and case study design. Study participants were selected through purposive sampling technique. Four couples were identified by a religiosity measuring questionnaire. In-depth interviews were conducted with them all and with a relative to each, and key informant interviews were undertaken with three religious fathers. Data were analyzed using thematic interpretative analysis assisted by a software called Qualitative Data Analysis (QDA). The research findings revealed that couples entered into interfaith marriage prompted by several factors including falling in love, holding affirmative dispositions towards a spouse’s faith, cherishing mutual economic support, and anticipating spouse’s conversion. Interactions among members of interfaith families were dual-faced. Effective spousal communications, keen tolerance and respect with in-laws, relatives and significant others, and unreserved family support characterized favorable interactions whereas recurring anomalies, exaggerated faith-oriented demands from a spouse, and perplexing communications typified unfavorable interactions, which were relatively predominant. The couples in those families faced such psychological and spousal challenges as feeling of guilt, separation, and concession, mutual suspicion, disagreement over decision making, and budgeting money and time. They also faced defies regarding food preparation, raising children, and maintaining religious identity. To cope with these challenges, couples adopted various strategies such as planning ahead anticipating possible stressors, relinquishing demands, and learning spouses’ religious traditions. It was concluded that couples’ reasons to enter interfaith marriages fed up each other ultimately giving way to gaining the courage to counter-stand challenges. Mainly due to a call of dissimilar values to the union, interfaith families were living in dissonance which was sometimes appeased by effective communications and keen tolerance. As implications, this study may help micro-social work practitioners working with couples and families to develop intervention strategies by informing various social work approaches, models and theories including family systems theory, family therapy, couples’ social work, and personin-environment. And, such areas of future research as prospects of interfaith marriage can be embarked on. Key words: Interfaith marriage, prompting reasons, family interactions, challenges, coping mechanisms, Bahir Dar