This paper estimates determinants of rural householdsâ€™ resilience capacity to landrndegradation in Gubalafto Woreda. Cross-sectional data collected through field survey byrninvolving 361 households, key informants interview and FGD was the base of the study.rnSequentially, explanatory mixed-method-research strategy was adopted as a researchrnstrategy. Stratified, simple random, and systematic sampling methods were employed to drawrnthe sample from the study population. The data was analyzed by using descriptive statisticsrn(dominantly percentage) and Principal Component Analysis (PCA). Socio-economicrncharacteristics of households, perceived effects of land degradation and copping strategiesrnwere analyzed using descriptive statistics. Hence, out of the total 361 surveyed households,rn293 (81.2%) replied that they were affected by land degradation. Therefore, householdsrnemployed different coping strategies in response to the effects of land degradation. Theserncoping strategies include; technical coping strategies, consumption based coping strategiesrnand non-consumption based coping strategies, as response to the effects of landrndegradation. Principal Component Analysis (PCA) was also run to estimate determinants ofrnrural householdsâ€™ resilience capacity. These latent variables (determinants) of resiliencerncapacity were estimated through observed variables. The Kaiser-Meyer-Olkin (KMO) testsrnof sampling adequacy for all latent variables, except Social Safety Net (SSN) were above 0.5.rnIn addition Bartlett's Tests of Sphericity for each variable (latent) were also significant atrndifferent levels, which imply the appropriateness of the model.