This chapter examines the determinants of extreme poverty in rural Ethiopia at the household level using indicators that reflect consumption expenditures, dietary calorie intake, and household assets. The descriptive analyses results indicated that ultra-poverty in the household consumption dimension was positively associated with distance from educational and health facilities, roads, and other infrastructure. The results of an econometric model showed that ultra-poverty was positively and significantly associated with household size and the age of the household head, and inversely associated with the ownership of farming assets and livestock.