The purpose of this study was to identify and describe the non-and off-farm activities practiced in the sample area and to look at the ‘push’ or ‘pull’ factors that influence households or individuals to engage; and factors that hinder participation of households in rural non- and off farm activities. A sample of 249 households was selected from five peasant administration the smallest administrative units in Ethiopia. The necessary data were collected through questionnaire, interview, and focus group discussion. A significance proportion (sixty three percent) of rural households participate in non-and off farm activities. The major non- farm activities are quarrying, handcrafting, and trade. Remittances and rent constitute another route for rural households’ income. However, lack of financial capital, market, and competition with manufactured goods hamper the sector. Therefore, concerned bodies should facilitate local rural credit institutions; access tomarket; introduce new technologies for the development of traditional handcrafts, and help smooth migration of people from place to place for off farm activities in time of peak time for coffee and cotton peaking.