The objective of the research was to assess the trends and forms of community participation to poverty alleviation in Bahir Dar town. The field study was limited to two projects, micro and small scale enterprise activities and credit service, however the finding and recommendation can be applied to all projects aimed to poverty alleviation and community self sustaining projects. In order to achieve the research objectives, a review of relevant literature was done. It began by reviewing definitions and concepts of poverty. The literature also over reviewed the importance of community participation to poverty alleviation efforts of a country and reviews the Ethiopian poverty reduction process. The literature further highlighted the role of community participation in achieving development goals. The data collection was done by means of focus group discussions complimented by face-to-face interviews. The data collected were analyzed thematically with the use of narrative summary and categorization in respect to the objective of the study. The findings of the study showed that there is low participation of community and therefore creating more opportunities for community participation activity and detailed study in the area is recommended.