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Wetlands are one of the most productive ecosystems that play a significant role in providing multiple ecosystem services. However, this resource has got less attention in national and regional planning. Hence, the objective of this study was to figure out the socioeconomic contribution of Lake Hawassa for the local and national economy and call for the concerned body (like; policymaker and planner) take possible action will be measured the lake from further degradation. A total of 164 households' questionnaires collected from five kebeles, and thus households were selected randomly from each kebele. Then, the data were analyzed using descriptive statistics, ANOVA and linear regressions model. The result showed that the majority of households' livelihood income strategies were from irrigation (54.8%), rain-fed (33.8%), livestock (6.5%), fishing (3.5), off-farm seasonal work (1.2) & others (0.2). The average annual total household income was 53,716.39 ETB. Out of this, lake income constituted 59.7% of the total income. The local households' income contribution of Lake Hawassa within selected kebeles was statistically significantly different by livestock watering, pasture for grazing animals and water for washing body or close. Other are did not reveal significant differences among the five kebeles for all the parameters analyzed. Overall result confirmed that the Lake contributed significantly to the household economy of the local people and hence, it is important to protect and improve the management of the lake and its wetlands for livelihood enhancement, while also securing their long-term ecological functions..