The wetland ecosystem is among the most important ecosystems globally. It is a source of ecosystem services that can contribute to the income and means of livelihood for communities living near the vicinity of wetlands especially in developing countries. Ethiopia is among the least developing countries in Africa where many communities around the wetlands depend on ecosystem services for their livelihoods. However, these wetlands are being degraded both by anthropogenic and natural factors. The objectives of the study were to assess the status of the major wetlands and their contribution to the livelihoods of communities in South Wollo Zone of Amhara Regional State located in North-Eastern Ethiopia. Districts in South Wollo with wetland potential were selected purposely in collaboration with Zonal Agricultural Office experts. A multistage sampling technique was used to select 114 respondents living around the wetlands for the interview. In addition to this, three focus group discussions and key informant interviews were conducted to gather data focused on types of wetlands, major provisioning ecosystem services, and major threats to wetlands. In the study area, 9 natural and 3 manmade major wetlands were identified. These wetlands have provisioning ecosystem services such as food production; source of grasses for animal feed; ceremonial activities; roof making and handicrafts; and water for drinking, livestock watering, and irrigation which are the major sources of livelihoods. Though these wetlands have important roles in livelihood, they are highly affected by settlement, conversion for agriculture, overgrazing, excessive water abstraction, deforestation, sand mining, pollution, invasive species, and climate change. Therefore, wetland management intervention plan should be prepared and implemented through a community-based restoration approach.