The people who live in the pastoral areas of Ethiopia are under the influence of harshrnclimatic condition. They were consistently victims of various dangers. The purpose of thisrnstudy is to scrutinize major pastora/livelihood chaflenges and their effects, and to look intornthe natural resources status so as to investigate the prospects in Dasenech and Hammer.rnThe pastoralist's opinions were used as basic information. For analysis, pastora/livelihoodrnwas treated as a function of various factors. To see the distribution of the financial capitalrnacross pastoral households, different socioeconomic groups were treated. To this end, thernstudy was conducted in four Kebeles selected using clear criteria. Questionnaires had beenrnused as instruments of data collection. Two hundred six pastoralists interviewed by usingrn"simple random sampling techniques". The data collected through questionnaires wasrnanalyzed using percentage, Pearson's correlation," the simple regression mode!", "OneÂ·rnWay ANOVA" and chi-square test statistics. The study revealed four major findings 1)rnPrevalence of various sources of income and vanÂ·alion across households based differentrngroups such as wealth, age, and family size. 2) Different livelihood problems, theirrnimpacts/effects and prospects were assessed by tile study. 3) Regarding mobility, as thernlivelihood strategy, there is evidence on advantages of sedentary life; such clues help forrndecision on how to intervene. 4) The study revealed that poor pastoralists are expected torndiversify their income sources to improve wealth status. Finally, some suggestions wererndrawn to improve the pastoral livelihood and natural resources status based on relatedrnissues of the study.