Ethiopia is highly vulnerable to hydro-metrological hazards, specifically drought and flood. However, experiences show less attention is given for flood risk reduction. Therefore, this study is conducted with the aim of assessing the impact of flood hazard on the livelihoods of rural households by considering the five livelihood assets. It also assesses the nature of flood hazard, sought the relationships between institutional role and flood risk management activities and it identify the households' flood adaptation strategies. It explains in detail how the linkage of flood affects the livelihood asset, what it looks like the institutions roles, adaptive strategies of the households' and livelihood outcomes.