This study was commenced to analyze the livelihood vulnerability and socio-economic determinants of households to climate change-induced recurrent drought in the most vulnerable and poverty-pocket areas of northern Ethiopia. While the household survey method was employed to collect quantitative data, focus group discussions, key informant interviews, while field observations were used to collect qualitative data. Descriptive statistics, indexes, and econometric models were used to analyze quantitative data, and content analysis was used to analyze qualitative data. The result of the study asserted that financial capital, natural resources, human capital, physical capital, and social capital are the key livelihood assets affected by climate change-induced recurrent drought in the study area. The index results of principal component analysis show that the households have very low adaptive capacity (0.29) while there were very high sensitivity (0.41) and exposure (0.37) to recurrent drought. The overall vulnerability assessment derived from three factors (e.g., adaptive capacity, sensitivity, and exposure factors) is - 0.46, confirming that the households in the study area were highly vulnerable to recurrent drought. Furthermore, low income, soil infertility, land size, education status, reliance on weather-dependent livelihood, social assistance, recurring drought, livestock feed shortage, and input price instability were identified as the key determinants of farm households' high vulnerability. The high vulnerability of poor households and consequent impacts of climate change-induced recurrent drought on the livelihood assets calls for integrated vulnerability reduction strategies and investment by both the governmental and non-governmental organizations in the study area.
