The mam purpose of this study was to explore the contribution of livelihoodrndiversification in constructing sustainable livelihood. The focus was to investigaternthe motivating factors of livelihood diversification, to identify the groups that arernengaged in diversification and to examine the groups that achieved success.rnThus, in conducting the study the researcher selected Gola and Galcha kabelesrnof Fentale Woreda as a study area. Seventy-one households w~re selected as thernsubject of the study. Questionnaires were administered to the seventy onernhouseholds, interview were conducted with eight key informants who have beenrnselected based on their background knowledge about the issue. Focus GrouprnDiscussion was held with four groups of male and female participants. Inrnaddition to that, personal observations were undertaken in the study. Percentagernand descriptive analysis were used to analyze the data . The findings indicatedrnthat, in the study area livelihood diversification is undertaken as a riskrnminimizing strategy. Though, households in the poor, middle, and rich wealthrngroup were found to be engaged in cultivation as livelihood diversification, theyrnare those households in the rich wealth group that could generate additionalrnincome from cultivation and build the capacity to deal with 'and recover fromrnstress and shocks. Natural resources degradation associated with Populationrnexplosion and the expansion of farming are found to be major threats for thernsustainability of cultivation as a livelihood in the study area . Thus, in order tornensure the survival of the people and avert the degradation of natural resources,rnenvironmental relieving mechanisms have to be designed. Building the humanrnand physical capital of the study area can contribute a lot in this regarded