This study examines the determinants of poverty dynamics in Ethiopia. Poverty reductionrnhas been the crucial issue for the development of the nation. But alleviating poverty hasrnbecomes difficult due to the structure and complexity of poverty. It became morernunsolvable with policies and development programs. This study applies the spellrnapproach of poverty experience and the ordered logit model to identify the poverty statusrnof households: poor, transient poor (-), transient poor (+) and non-poor. Observing thernESS balanced panel dataset of 2011/12, and 2013/14 covering 3,777 rural households,rnfrom the study finding 70.13% of poor households classified as chronic poor (remainedrnpoor in two periods) while 8.93% of non-poor households are vulnerable to beingrntransient poor (-). And observing the ESS balanced panel dataset of 2013/14, andrn2015/16 covering 4,547 households, the study finding is 43.39% of poor householdsrnclassified as chronic poor (remained poor in two periods) while 18.76% of non-poorrnhouseholds are vulnerable to being transient poor (-) Our estimations confirmed that thernimportant factors of poverty dynamics in Ethiopia are occupation of household head,rnownership of house, dependency ratio, number of household members, distance from thernmarket, non-farm income, educational status of household head, and age of householdrnhead. The finding implies that in the rural part of Ethiopia chronic poverty is higher.