A comparative study on the contribution of dairy cattle and indigenous chicken projects on poverty reduction in Tandahimba district was done in four villages of Tandahimba district. A sample size of 120 respondents 60 from dairy cattle and indigenous chicken projects and other 60 out of the projects were selected and interviewed using a structured questionnaire. Data obtained from the study area were analysed using Statistical Package for Social Science (SPSS) and Statistical Analysis System (SAS) computer programmes to compute descriptive statistics. Income was compared for households in and out of projects as well as before and after joining the projects. It was found that mean annual incomes for households in dairy cattle project (1 427 800.00 TAS) were higher than those (414 800.00 TAS) out of the project. Further, incomes were higher after (1 427 800.00 TAS) than before (527 200.00 TAS) involvement in dairy cattle project. Farmers’ mean annual income in indigenous chicken project was higher (705 850.00 TAS) than for those out of the project (407 290.00 TAS). In addition, farmers had higher income after (705 850.00 TAS) than before joining in the poultry project (337 680.00 TAS). Forward multiple regressions was carried to determine the contribution of livestock projects to total annual household income. Annual income from dairy cattle and indigenous chicken ranked second each in their respective villages after cash crops. The coefficient of determination (R 2 ) increased from 0.86 to 0.99 and 0.67 to 0.96 for villages under dairy cattle and indigenous chicken projects as more economic activities were included in the multiple regression model. It was concluded and recommended that livestock projects had significant contribution to total household annual income. The local governments, Non-Governmental Organizations, Faithiii Based Organizations and Community Based Organizations should continue to support and encourage development of livestock projects.