The main objective of the study is to evaluate the contribution of AdCSIrntowards poverty reduction and job creation. The study was conducted onrna ll of the branches of AdCSI emplO ing the 'Â·b efore" and "afte r" method sorna s to evaluate the impact of the microfinance institution on reducingrnpoverty level of its clients.rnPrima ry data was collected using structured inte rview, FGD, andrnobservational check list while secondary data was obtained from thernreco rds of the in stitution, journals, proceedings, bulletins , internet andrnvarious books. Both desc riptive and infe rential stati stics such as mean ,rnpercentages, Wilcoxon signed rank s test and independent two sa mples ttestrnwas employed. Multi s tage sampling method was employed to take arnsample of cl ients from the total population.rnThe saving amount of the res pondents' has increased after participatingrnin the program with d ifference in mean saving between the male andrnfemale clients. All of the socio-economic variables have s hown arnsignifi cant increment after program participation. And there was nornsign ificant difference between both sexes regarding the socio-economicrnvariables except for the level of in come after loan. Accord ing to the studyrn96.1 "!t, of the mature cl ients witncssed increase in income levels . Thernaverage monthly income of the male clients increased from 918.6 torn2157.1 ETB and the fem a les' increased from 8 14.8 to 1834.8 ETB a fterrnprogram participation. The reasons for positive change in income of thernbenefi ciaries were: through the loan they were a ble fin a nce productiverncapital assets and finance the working capital of the bus iness . The re fore ,rnthe credit help ed th em to open a n (w business, expa nd the existing andrndive rsify sources of income. According to the study 64.1 % of the samplernbenefic iaries purchased productive assets due to access of loan andrn79.2% reported that their households' over a ll d iet condition hasrnimproved a fter program p a rticipation and only 77.5% of the clients couldrnafford to medical expend itures of th eir families before programrnparticipation but the number increased to 99.2% a fter the in tervention.rnThus , seeing the positive effect of the cred it program on the bene ficiaries'rnsocio-eco n omic conditions, it can be said th a t the institution is on thernright track to achieve its ultimate objective of poverty reduction .