Various rural livelihood studies in the past associated the rural people to crop production and animal husbandry. This research tried to introduce rural people practicing diverse non-farm activities in which households engaged as means of survival. The main purpose of the research was to assess and analyze the livelihood strategy of rural households in Awra Amba community. The result of the study revealed that almost all members of AwraAmba community are out of on-farm agricultural activities because of scarcity of land. As a result, they are dominantly weavers and traders. Awra Amba community members bounded by various obstacles are nowadays a model for rural development throughout the agricultural community. Their industrious nature, above all, their devotion to pay currency for human capital helped them survive in a limited amount of land which is a total of 17.5 hectare. Weaving, a necessity, in one way or another is the backbone of their survival.