Cross-border trade is a strategy undertaken by people as a coping mechanism tornescape poverty. This study examines cross-border livestock marketing and pastoral householdrnincome in Harshin district by using primary and secondary data that were collected throughrnstructured questionnaire, focus group discussions and key informant interviews with crossborder market participant, (77) and non-participant (78) sampled households. Both descriptivernand inferential statistics specially Propensity Score Matching were used to assess the linkagernbetween cross-border market participation and household income in the study area. The studyrnrevealed that four among ten model variables, influence the cross-border market participationrndecision which are educational level, family size, number of livestock owned by the household,rnand distance to nearest border market place The finding of the study also shows that, brokerrnplays dominant role in marketing channel which is 80% of the chains engaged by the broker forrnmediating process. Thus, the cross-border livestock marketing had positive and highlyrnsignificant effect on household income in which 3689.6Birr increment was found due to therncross-border market participation. Generally, the finding of the study suggests that there is arnneed to scale up the education intervention programs to improve livestock marketing andrnenhance community awareness towards diversifying their income through cross-border livestockrnmarket participation without undermining the role of the government. Shortening the length ofrnthe market chain to minimize transaction cost institutional arrangements, policy support andrnadopting legalized channel against illegal rout is needed.