Adoption of improved forage technologies is one in every of the measures presumed tornboost dairy productivity and farm income given potential promotions of the crops. Inrnlight of this premise, the objective of the research is to examine factors affectingrnimproved forage technology adoption and impact on smallholder dairy productivity inrnEthiopia evidence from Debre Libanose woreda, North Shoa zone, Oromia regionalrnstate. The study used cross-sectional design. A multistage stratified sampling procedurernwas employed to draw 319 sample households from one woreda and three kebeles.rnWithin the selected kebeles sample respondent households were categorized into tworngroups using a random sampling approach (adopters and non-adopters). In thisrnparticular study, both primary and secondary data were gathered. Primary data wasrncollected using KI interview, focus group discussions and cross-sectional survey fromrnsample households (128 adopters and 191 non-adopters). Descriptive statistics andrneconometric models were employed to analyze the collected data. The statistical modelsrnnamely, binary logistic regression, Tobit and propensity score matching were used torndetermine factors affecting the decision of farm households who participate (adopt)rnimproved forage technologies, extents of improved forage technology adoption andrnimpact of technology adoption on household income respectively. The binary logisticrnregression result revealed that age, education, market distance, extension contact,rnparticipation in training; field day and improved cattle ownership were significantrnfactors affecting the likelihood of adoption of improved forage technology positively andrnsignificantly. Similarly, results from Tobit model estimates revealed that education,rndistance to market, extension contact, field day and improved cattle ownership werernpositively and significantly affect the intensity use on improved forage technology whilernage of the household head had negatively and significant influence on the intensity use ofrnimproved forage technologies. The result from PSM estimation revealed that adoption ofrnimproved forage technology had significant impact on milk yield and farm income of therntreated households compared to the control groups. The estimated ATT reveled that,rnimproved forage technology adoption has increased dairy productivity (milk yield) andrnfarm income of household (in line with farm income, keeping other farm income constantrnfor both the treated and controls) by 29.32 % and 19.56 %, respectively, and the result isrnstatistically significant at 5% (t-value =2.49; P=0.05 for yield) and (t=2.02; P=0.05 forrnfarm income).The study concludes that improved forage technology adoption hasrnremarkable effect on the dairy productivity and livelihood of smallholder farmersâ€™ status.rnFinding of this study suggests that improved forage technology is one of the viablernsolutions to improve the livelihood of smallholder farmers in the study area by increasingrnincome from livestock. Therefore, policy interventions giving priority to the variablesrnmentioned above that stimulate improved forage technology adoption thereby improverntheir livelihood are recommended.