This study identifies the determinants that influence the livelihood strategies of firewood and charcoal producers. The paper involves a survey questionnaire of 295 sample households based on snow ball sampling method in the dry lands of Oromia and Afar regions during 2019. The data were analyzed using descriptive statistics and multivariate probit (MVP) model. Results show that 39% of households derived their income from crop and 47% from wood fuel for those households whose livelihoods strategy in farming. Households in agro pastoral livelihood strategy about 58% and 21 % derived their income from wood fuel and crop, respectively. Households whose depend their livelihood strategies on pastoral, 51% generate their income from wood fuel and 29% from wage. The model reveal that sex, age, education, family size, livestock holding, farm size, distance, off-farm activity, relief aid, training, market information, and membership on institution were significantly affected the livelihood strategy of firewood and charcoal producers in the dry lands of Ethiopia. Therefore, firewood and charcoal producer livelihoods are diverse and policy makers need to reflect on the most suitable ways of supporting sustainable use of dry land forest management and socio-economic intervention options. Keywords : Charcoal, Dry land, Ethiopia, Firewood, Livelihood DOI: 10.7176/JETP/11-2-02 Publication date: March 31 st 2021