Despite the undeniable agricultural potential, a large proportion of the population of Ethiopia has been faced with food insecurity and poverty. So, an irrigation scheme is among the feasible way in which agricultural production and productivity can be boosted to meet the ever-growing food demand, and all over livelihood. Therefore, this study attempts to answer the question “Does Wonka Irrigation Scheme in the North West Ethiopiaenhance the welfare of smallholder farmers? A two-stage sampling procedure was used to select the sample kebeles and households, whereby 136 farm households were selected using a stratified random sampling method for this study, and primary data were generated for the selected variables that were used to measure the welfare of the farmers. It was investigated that the Wonka irrigation scheme had contributed to irrigated farms, net income from irrigation was birr 21033.39. In the case of rain-fed, the net income was birr 3541.15. Based on multiple regression analysis Expense of crop production, Irrigated land size, the Household farming experience of irrigation agriculture and the educational level of the household head have a positive impact on the household income. Therefore, the governmental and non-governmental organizations should promote, improve and expand irrigation schemes in all areas of the district and other areas