The development of the agricultural sector in Ethiopia in general and in Arba Minch Zuria Woreda, Southern Ethiopia in particular, is thought to depend on agricultural intensification. To this end, several governmental and non-governmental organizations initiated small-scale irrigation projects all over the nation, including in Southern Ethiopia. Despite these efforts, it is found that smallholder farmers in the study area are reticent to participate in small-scale irrigation schemes. Therefore, the present study is aimed at investigating factors affecting rural households’ participation in a small-scale irrigation scheme in Arba Minch Zuria Woreda, Southern Ethiopia. Accordingly, the study employed a multi-stage sampling technique to collect primary data from 379 sample households. Descriptive statistics and binary logistic regression analysis were used to analyze the collected data. The study identified the major problems associated with small-scale irrigation in thestudy area. Among others, lack of sufficient irrigation water, lack of effective marketing system, lack of input supply and irrigation facilities, presence of pests and diseases, and lack of awareness about irrigation are mentionable for low participation in the scheme in the study area. The econometric model result revealed that the age of the household head and dependency ration has a statistically significant negative effect on rural households’ participation in small-scale irrigation while education, adult equivalence, livestock holding, and land size have a positive and statistically significant effect on the variable of interest. Therefore, providing education services for rural households, arranging field training services and experience sharing to farmers is advisable to alleviate these problems and improve small-scale irrigation utilization in the study area. Keywords: Small-Scale Irrigation; Smallholder farmer; Binary logit model