This paper is a summary of a thesis submitted to the Kimmage Development Studies Centre, Dublin in partial fulfilment of the requirements for the MA Degree in Development Studies. The paper aims at identifying the determinants of the livelihood strategies of female household heads in Wolenchiti town, in the Eastern Oromia Region of Ethiopia. Qualitative research techniques were applied to collect and analyze data from both primary and secondary sources. The findings show that the major livelihood activities pursued by the female household heads in the town include petty trading, domestic services, daily labour, prostitution and involvement in urban agriculture. Income diversification, frequent change of occupations, remarriages and involving children in income generating activities are also among the livelihood strategies widely pursued by female household heads in the study area. With regard to factors determining the choice of livelihood strategies, the study found that age, age at first marriage, household size, number of years of headship and marital and migration status are the most important demographic factors at work. As regards socio economic factors, the results of the study show that access to financial, human, social, physical and natural capital were the leading determinants of livelihood strategies. Formal and informal institutions that either facilitate or constrain the success of various livelihood strategies were also important factors behind the choices of livelihood strategies among the women studied. The results of the study also indicate that provision of credit and skills training for female household heads are important areas of intervention that could help improve their livelihoods.