For the purpose of attaining objecti ves of the research and answering research quest ions, thisrnstudy employed both quantitative and qualitative data. The data for the study were collectedrnboth from primary and secondary sources. The primary data collection method involved therngeneration of both quali tative and quantitative data. The necessary information was coll ectedrnusing di ffe rent instruments such as household survey questionnaires, interview with keyrninformants and focus group discussions. The secondary data collection method involved thernreview of documents and related literatures issued by the Ethiopian Government,rnimplementing/partner donors and from other Sources.rnThe reserach found that Productive Safety Net Programme targeting in Ibnat woreda combinedrnadmini strati ve and community targets approaches. In principle combining the two approachesrncreates complimentarity and thereby enhances targeting effi ciency. However, in practice therneffic iency of targeting was impeded by a number of factors and problems such as: quotarnsystem, targeting methods practiced, the criteria used to screen participants, and low paymentrnrates.rnThe targeti ng criteria to allocate diffe rent amounts of resources to different kebeles in thernworeda was based on past relief recipients and total production in the recent harvest season.rnWith in the kebeles, the Community Food Security Task Force used oxen ownership as thernvulnerability indicator.rnThe present research has used combining ind icato rs for determ in ing targeting effi ciency byrncomparison of the local selection cri teria and across the targeting guideline criteria to identifyrnthose who are benefici ary and non-beneficiary for Productive Safety Net Programme. Tornachieve the PSNP objectives increasing the proportion of poor households those who are notrnincluded in the program should be the greatest priori ty. So the researcher from subject ivernjudgment accepts 10 percent error (5 % inclusion and 5 % exclusion erro r).The findings on targeting efficiency shows that the local selection factor 'oxen ownership ' withrn26% exclusion errors but when combining two indicators the exclusion errors were 7 %, 4.3%rnand 4.3% for ' oxen and land', 'oxen and food aid ' ,and ' land and food aid' respectively.rnTo achieve the Productive Safety Net Programe objectives increasing the proportion of poorrnhouseholds those who are not included in the program should be the greatest priority. So use ofrncombining two indicators is associated with improved targeting by reducing exclusion errorrnfrom 26% in 'oxen ownership' to 4.3% in 'oxen ownership and food aid 'and ' land ownershiprnand food aid ' .rnThe recommendations of the study to enhance the efficiency of targeting in Productive SafetyrnNet Programme are community targeting process should be transparent, participatory and wellrnmanaged; and selection criteria should be based on combination of at least two criterions inrnorder to reduce errors of inclusion and exclusion.