Child labor is a widespread and growing phenomenon in todayâ€™s world, especially inrndeveloping countries. Alike other developing countries, child labor is a pervasive problem inrnEthiopia. Agriculture is by far the dominant sector of child employment in rural areas wherernchild laborers are mostly engaged in the informal sector in urban areas. Though there arerndifferent types of child labor in the informal sector, this study focused on children that arernengaged in blacksmithing activity. The objective of the study was to examine causes andrnimpacts of child labor on children who are engaged in blacksmithing activity in Kolfe/Keraniornsub city. The study is descriptive in its nature and it employed a child-centred research. Thernstudy employed cross-sectional research design by using both quantitative and qualitativernmethods of data collection. The quantitative data were collected from the entire (45) childrenrnwho were engaged in the blacksmithing activity in the study site by the use of census surveyrnand via structured interview schedule. The qualitative data were collected using focus grouprndiscussion conducted with the working children and observation. The findings of the studyrnrevealed that the children were pushed to work by various socio-economic and culturalrnfactors. The core causes of child labor identified in the study were poverty, societal attitude,rnrural-urban migration and peer influence. The study also revealed that the children werernleading adult lives. They were working for long hours under conditions damaging their healthrnand physical well-being. They were also deprived from meaningful educational opportunitiesrnthat could open up for them better future