This study aims to assess the contributions of urban agriculture to household livelihoodrnimprovement and to access the perceptions of urban farmers about the benefits of urbanrnagriculture to environmental improvement in the Burayu town administration. The researchrnrelies on a mixed approach, making use of both quantitative and qualitative methods. Systematicrnrandom sampling method was employed to select households from local producers andrnpracticing and benefiting from urban agriculture in the town administration of Burayu and alsornsystematic random sampling techniques were used to select the kebeles. From 1047 targetrnpopulation 289 sample urban farmers were selected using systematic random samplingrntechniques and studied by categorizing them into three groups Gafarsa Guje, Gafarsa Nono, andrnGafarsa Burau. Descriptive Statistics and the parametric estimation logistic model were carriedrnout to analyze the data by using a statistical package for social sciences (SPSS IBM version 20).rnThe study results indicate that livestock rearing, crop production, and mixed farming arernpracticed in the town. The vast majority of the respondents (70.6%), were involved in urbanrnagriculture for both commercial and personal consumption. About 221 (76.5%) practice milkrnproduction, while 141 (48.8%) practice poultry, among the main contribution of urbanrnagriculture, generating household income, creating job opportunities, serving as a source ofrnfood, and ensuring the town's environmental improvement by reducing environmental pollutionrnby waste recycling, reducing urban heat by plantation. Furthermore, the findings identify thernfactors/challenges that impede practicing urban agriculture, such as a lack of farmland, lack ofrncredit services, poor market access, and availability of storage areas. Finally, the researcherrnsuggests that government/town administration needs to encourage, strengthen, and support thosernactivities by addressing the right policy and giving recognition to the role of urban agriculture inrnimproving wellbeing in particular and its contribution to the country's GDPs in general