This paper focused on the contribution of crop diversification with underutilized crops inrnimproving household food security and livelihoods in Guto Gida district of Ethiopia. Most of thernfarmers produce only stable food crops without considering their productivity, nutritional valuernand production sustainability. Besides, nutritional role, productivity, and stress tolerance ofrnunderutilized crops was not equally known and promoted in this region even though it improvesrnnutritional quality and increases purchasing power of the households. Multistage samplingrntechniques was applied on a sample of 120 smallholder farmers was taken. Households arerncategorized as underutilized crop producers and non-producers. Food Consumption Score andrnCoping Strategy Index were employed to measure food security status of households. Ordinaryrnleast squares and simple leaner regression models, and descriptive statistic were used to analyzernthe data. The diversified producers of underutilized crops had showed significant level of croprnproduction (22.48%), consumption (11.73%), total annual sale (19.32%) and total incomerngeneration (26.67%) than the non-producers of underutilized crops at alpha 5%. Based on thisrnresult it can be conclude that crop diversification with underutilized crops is one of thernimportant options that can contribute significantly to household food security and livelihoodrnstatus. Overall results of the survey imply that the current agricultural policy of Ethiopiarngovernment was not given attention to diversify and promotion the underutilized crops, so itrnshould get series attention and firm, specific, clear policy and strategies due to the continuedrnmalnutrition and food insecurity threat in the country.