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Culture can never be the solution to the extreme poverty, but it can play a gearing effect which controls the overall system of the strategies, particularly in rural areas where poor communities are dependent on social resources and cultural inputs. From all these, the interrelationship of culture and poverty in Ethiopia is not a new phenomena; the history of the country tell us that Ethiopians have been suffering from a range of deprivations and poverty has been a way of life for a large segment of the population for a very long period of time. Hence,this analysis duly brings down the interrelationship between culture and poverty related issues in the social environment, and it would assist interventionist, local peoples, academicians to critically analyze cultural variables, redefine cultural challenges, and ultimately helping to create conditions in which poverty reduction strategies achieve their visions.