The aim of the study was to examine EXC’s MIS service effect in coffee smallholder farmers’rnlivelihood improvement and transaction cost in Gedeo zone, SNNPR. To investigate the study,rndescriptive and explanatory (causal) research design and quantitative approach are used.rnProbability and nonprobability sampling techniques and multi-stage cluster samplingrntechnique are used to collect cross sectional data from 287 smallholder farmers usingrnstructured questionnaire. The ECX MIS service users and nonusers are significantly differ inrneducation level, number of children above 16 years of age, number of languages spoken, inrntheir radio listening habit, annual production level, annual revenue and expenditure they spendrnin farm and harvesting seasons. Logistic model is used to explore factors influencing farmers’rnusage of ECX MIS service and to estimate propensity score to match the covariates for ECX’srnMIS service users and nonusers. The result showed that age, education level, mobilernownership, access to extension service and availability of electricity significantly influencedrnhousehold decisions of ECX’s MIS service usage. Propensity score matching (PSM) was usedrnto determine the impact of ECX’s MIS service on smallholder’s income and transaction cost.rnThe study found out that ECX’s MIS users’ income is higher than the nonusers and ECX’s MISrnusers incurred higher transaction cost than the nonusers. Generally, the study found out thatrnthe net effect from using ECX’s MIS service is positive so that smallholder’s livelihood can bernsubstantially improved with effective implementation of MIS services. Therefore, the studyrnrecommends ECX’s to look into its MIS implementation practice and correct any miss deedsrnthat resulted in smallholder incurring higher transaction costs.