By using a nationally representative cross-sectional data set, this study identifies the determinants and levels of rural households’ vulnerability to poverty. Household size, head’s sex, age, literacy status, marital status, dependency ratio, and agro-ecology are the major determinants. The study found 54% vulnerability and 31% poverty rates. Regionally, the ratio of vulnerable to poor households for Tigray, Amhara, Oromiya, Southern Nations Nationalities & People (SNNP), and other regions, are 1.85, 1.64, 1.47, 1.53, 2.14, respectively. The study implies policies and programs that are put in place should consider the current poor and vulnerable and regional poverty and vulnerability disparities.