The Agricultural policies in Ethiopia to improve the commercial orientation of farmers require identification of challenges at farmer level and in-depth action to shift the sector. It needs more works to be done to transform the country's current subsistence oriented production system of smallholder farmers. Considering this fact, the current study aimed to identify the factors affecting the degree of agricultural commercialization of smallholder farm outputs in the Offa district of Ethiopia. Primary data was collected from 120 randomly selected households using a semi-structured questionnaire. The data were analyzed using descriptive and inferential statistics to describe the output market participation and difference. Furthermore, the Tobit econometric model was used to find determinants of the degree of agricultural commercialization of smallholder farms. A total of 11 explanatory variables were considered in the regression. Total cultivated land size, education, household head age, and access to transport were found significantly determining the intensity of farm output side commercialization. Concerning development authorities should focus on these variables in design, promotion, and implementation of policies and programs to increase rural household participation in commercialization and to secure its benefits in the area.