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Droughts are one of the highest natural disasters globally having major impacts on social, economic and environmental conditions. This study was undertaken in Yabello woredas of Borana Zone, Southern Ethiopia to assess the socio-economic impacts of drought and coping strategies on pastorals and agro pastorals community. The survey results show that drought has severely affecting the socioeconomic activities of the community. Livestock, crop production, pastoral income, grazing land, water sources and social services are highly affected by drought. Even though the communities are using different coping strategies due to the drought severity their coping mechanisms is also weakening. So improving communities coping capacity is recommended.