This study was carried out to examine the significance of Coffee-based agriculture in the socio-economic development of rural livelihoods in Ethiopia, with particular emphasis on households in the Borecha District of the Illubabor Zone, Oromia Regional State. In this dissertation, three randomly selected study kebeles2 were considered. The primary data were collected using household questionnaires, observation and key informant interviews. The secondary data were acquired from a review of the diverse and extensive literature contained in journals, textbooks and published and unpublished documents. The target population encompasses 1,600 coffee-growing households in the Borecha District, although the sample included only 120 coffee-growing farmers. Sample selection was performed using a stratified sampling technique to select three kebeles. The data analysis was both qualitative and quantitative, which involved descriptive statistics and general linear model (UNIANOVA, MANOVA). The data are presented as tables, bar charts, and line graphs accompanied by correlations and multiple comparisons that help to interpret the findings and to generate conclusions that support solutions to the identified problems. The findings show that coffee growing has increased the income generated from direct sales and associated employment opportunities. The social contributions realised include that over the past two years, households trend in spending on education increased. Moreover, sampled households access to health facilities changed after they started growing coffee. / Development Studies / M.A. (Development Studies)