Background. Improved sheep production practices are becoming relevant, but smallholder farmers’ involvement in improved sheep production was below expectations and detailed studies were restricted on the determinants of the participation of smallholder farmers in improved sheep production. This research was conducted to examine the determinants of the involvement of smallholder farmers in enhanced sheep production in the study area. Methods. Multi-stages sampling techniques were used for this study. Firstly, improved sheep production had a big effect on the incomes of households of participants and nonparticipants. Finally, three kebeles were chosen by basic random sampling, and the third was picked for systematic sampling by 144 survey respondents. Quantitative and qualitative data were gathered from primary and secondary sources. Data collection techniques were undertaken by surveys, focus group discussions, and key informants. Quantitative data were used to evaluate descriptive statistics, such as average, frequency, standard deviation, scope, and inferential t-test and chi-square statistics, and a logit model. Qualitative data obtained from focus group discussion and key informants were analyzed by narrative and used for survey data triangulation. Results. Out of the 144 samples, 51 were participants and 93 were nonparticipants. Participation determinants found in this research field were household labor, age, communication frequency with developers, membership in cooperatives, land ownership, participation in credit, and off-farm income. Improved sheep production had a major effect on the incomes of households of participants and nonparticipants. Multiple determinants typically affect the role of smallholder farmers in raising sheep production. Conclusion. Future initiatives under a successful policy should aim at accelerating agricultural and rural growth by efficiently leveraging enhanced sheep capacity in particular in the study region and Ethiopia in general.