The overall aim of this study was to assess factors affecting the success of PSNP in rural livelihood supporting program in Lemo woreda Hadiya Zone of Ethiopia. Different data were used for the study. Also, survey was employed by using systematically selected 190 sample PSNP beneficiary households using a random sampling technique. The data had been analyzed through descriptive statistics and qualitative ways. The findings revealed that very small size of a plot of lands were a severe problem for the program. More than half of the beneficiaries hold less than 0.75ha of lands which, is very small to influence positively the livelihood of the beneficiaries. Low credit service utilization was become another challenge for beneficiaries in study area. Moreover, the study shows, still the beneficiaries could not save i.e. their saving experience and asset holding was not increased. Besides this, the study depicted that there are complained on the amount of monthly transfer and credit offered was being too small and insufficient to generate sustainable livelihoods. The local PSNP actors, the government and NGOS should aware the beneficiary households to think of the program objective and have to work hard to improve rural poor's asset holding to avoid the longer dependency over the program.
