Region 5 is one of the most impoverished and insecure regions of Ethiopia. For decades, the region has suffered from a multitude of armed conflicts involving state and non-state actors. Region 5 is also one of the most underserved states of Ethiopia with some of the lowest levels of human development indicators nationwide. Although the adversities of poverty and conflict are widely acknowledged in their own respect, there has been little or no inquest into why poverty and conflict have prevailed under the same space for decades. Poverty and conflict have often been seen as separate phenomena that are dealt with using different sets of theories and practices in the real world. Nonetheless, a closer look at poverty and conflict in Region 5 reveals that both are strongly connected to each other. The poverty-conflict trap has been an on-going cycle in the region for the last five decades. The main intent of this research paper is analyzing the two-way relationship between poverty and conflict in Region 5. By studying this relationship, this analysis seeks to contribute to a new framework that brings peacebuilding and development closer.