The study was conducted from June 2011 to November 2012. We investigated the contribution of Lake Tana fisheries to the livelihoods of the people living around the lake. Random sampling techniques were used to select respondents. In total 145 respondents were drawn. The data were analyzed using descriptive statistics, one way ANOVA and correlation analyzes. We found that there were significant income difference between fishers using modern and traditional boats (P<0.01); perform fishing daily and occasionally (P<0.01); and fishing in groups and fishing alone (F=23.71; P0.01). Fisheries contributed 48% to the total annual income of the fishers’. Age (R = 0.372), fishing gears (R = 0.613), fishing experience (R = 0.466) and fishing frequency (R = 0.326) were associated positively with fishers income and correlations were significant (P < 0.01). However, distance from market (R = -0.457) and catch per unit effort (R = -0.342) were negatively associated with fishers income (P < 0.01). We conclude that, fisheries are a vital means of livelihood for fishers living in villages surrounding the lake. Therefore, the government, none governmental organizations and the community themselves should give due attention to fisheries.