Livestock development and production is constrained and challenged by recurrentrnfeed shortage. Forage innovation is proposed to minimize feed shortage for thernlivestock sector and it is also recommended to control soil erosion and landrndegradation. Even if the level of adoption is limited, the introduction' of therninnovation is not a recent phenomenon in the country. The main emphasis of thisrnstudy is to assess major feed resources and to identify determinant factors,rnconstraints and challenges of adoption of forage innovation in smallholderrnfarming systems. Kalu is one of the districts where smallholder farming system isrnpracticed. It is one of the 15 administrative districts in South Wollo Zone ofrnAmhara Regional State.rnIn the study, analysis was made using primary data collected from 120 samplernhouseholds selected through systematic random sampling from purposivelyrnselected six Kebeles. Structured questionnaire was used to collect data. The datarncollected from the sample households using structured questionnaire wasrnsupplemented by data collected from key informants and focus grouprndiscussants. Descriptive statistics and statistical analysis (chi-square and ttests)rnwere used to describe the sample households' socio- economic, institutionalrnand adoption characteristics; and to test statistical significance of variables thatrninfluence the households' adoption decisions. In addition to the statistical tests arnlogit model was employed to identify determinant factors in adoption of foragerninnovation.rnThe major feed resources identified were crop residues, weeds, aftermath andrngrazing pastures. The smallholders manage and control feed resources throughrncollecting and piling crop residues and hays.rnForage adoption is started 25 years before in the district. The land allocated andrnthe priority given to grow forage species is limited. The adoption decision isrnmainly constrained and challenged by uncontrolled grazing and water shortage.rnLabor shortage, land shortage, literacy le vel; market access, credit delivery, andrnforage seed have limited impact to challenge and constrain adoption of foragerninnovation.rnThe logit result shows that from different factors hypothesized to determinernadoption of forage innovation, dairy production, beef fattening, contact withrnextension agents, forage related training, inviting farmers to grow forage species,rndistance from towns, water and free grazing are found to be significant. The usernof cross-bred cows in the dairy production activities has positive and determinantrneffect on adoption of the technology so that the shift to improved- bred should berna sustainable endeavor. The result also has implication for policy makers,rnresearchers, policy implementers and non- governmental agencies to take theirrnparts in minimizing the constraints and in enhancing the potential for adoption ofrnforage innovation so that the productivity of the livestock sector is increasing.