This study is undertaken to examine the contribution of microenterprises to thernsustainable livetihoods of the households of their operators in Woliso town. ThernSustainable Livelihoods Framework has been employed to understand the dynamicsrnof the livelihoods of the households. Industry, trade and service are the major sectorsrnin which microenterprises engaged in the town. The study employed househotdrnsurvey and in-depth case study to elicit the required data from samplernmicroenterprises selected from each sector The study has found out thatrnmicroenterprise operators com billed different tive tihood assets/capitals (human,rnphysical, social, and financial) to pursue different livelihood strategles/acflvities. inrndifferent contexts, and realized such livelihood outcomes as increased income,rnreduced vulnerability, and improved food security There were organizations andrninstitutions that, in one way or another, enabled or constrained the livelihood emieavorrnof the operators Rising cost of living, loss of business, declining supply and risingrncost of local raw materials, chronic sickness and death of household heads werernfound to be the major shocks and stresses the sample households faced In order torncope with these shocks/stresses, the households adapted such mechanisms asrnrenting out rooms, reducing consumption of staple grains with soaring price, andrnshifting to less nutritious food items. Microenterprises have contributed to thernsustain ability of their livelihood by providing sufficient income that buffers themrnagainst stresses/shocks by themselves, and by supplementing other sources ofrnincome.