This paper aims to examine the major determinants and challenges of women's participation in income-generating activities focusing on rural women of Ethiopia's practical evidence. To carry out this study both primary and secondary data was collected and analyzed. Randomly selected 161 households were the source of primary data for this study. Secondary data was collected from the review of related works of literature. A binary logistic regression econometric model was implemented to identify major determinants of women's participation in income-generating activities. Women in the study area are not allowed by their husbands to participate in high-income earning activities. They are considered as a housewife and the only husband is expected to participate in high income-generating activities due to the local customs. As a result, some women participate in small business activities like livestock product sales, vegetable and fruit sell, poultry, petty trade, hairdressing, and wage labor. In the study area, women's participation in the income-generating activity is determined by age, husband’s education, women's education, family size, land size, market distance, livestock holding, and access to credit. This paper contributes to the literature on women's participation challenges in income-generating activities, giving emphasis on rural women's perspectives. It provides the basis for further studies aimed at challenges hindering women's participation in high-income earning activities, particularly in developing countries.