This study investigated the current trends and root causes of protracted poverty in Northeast Amhara. The study applied a political ecology perspective that viewed such a problem from a structural and power relation lens unlike the conventional apolitical existing narratives. The data sources were survey questionnaires, key informant interviews, and observation. The sample size was 404 households, and the analysis was e based on 381 valid responses. This study found that 59% of the households are below the poverty line, and 46.4% of the households’ livelihood standard has deteriorated from time to time. Around 47% of respondents reported that the root cause for prolonged poverty in their locality is low government attention though population pressure, conflicts, lack of fertile land, corrupted land redistribution systems, drought, and hilly topography are also contributing factors. The study showed that level of education, gender, land ownership, land fertility, land use type and topography, and family members’ age group are significant to the poverty level at p<0.05. Thus, this study suggests that public local development interventions should consider the potentials of Northeast Amhara including mining, animal production, Honey Bee keeping, eco-tourism, and small-scale irrigation. In addition, safety net related programs should always consider the vulnerability of landless, youth, women, and artisans. Last, Northeast Amhara requires a dry land-mountain development approach instead of the conventional local development practices implemented so far.