<p>Weather Index-Based Crop Insurance (WICI) is a promising mechanism for mitigating the adverse effects of climate change on the agricultural sector. Despite its potential, WICI remains in the pilot phase in Ethiopia, and limited evidence is available on how its attributes influence farmers’ adoption decisions. This study employs a discrete choice experiment (DCE) and a mixed logit model, using data from 504 households, to analyze farmer preferences for key WICI attributes, quantify willingness to pay (WTP), and assess preference heterogeneity. The experiment evaluates five attributes: coverage type, contract duration, loss assessment method, coverage ratio, and premium. Results indicate that farmers strongly prefer index-based insurance over loss-adjuster-based assessments due to its efficiency and transparency. They also favor higher coverage ratios, which enhance household food security and sustain farm investment during climate shocks, and exhibit a clear preference for lower premiums. WTP estimates reveal that farmers are willing to pay higher premiums for preferred (non-baseline) attributes over baseline attributes. Preference heterogeneity observed: farmers in drought-prone areas prefer drought coverage, while those in flood-prone areas favor flood coverage. Larger farmers exhibit lower demand for specialized drought insurance compared to smallholders. Additionally, farmers with higher educational attainment exhibit stronger preferences for higher coverage ratios compared to those with lower educational attainment. These findings underscore the need for insurance products tailored to local agroecological and socio-demographic contexts to enhance WICI adoption, thereby strengthening climate resilience.</p>