<p>The socioeconomic and management implications of irrigation dams remain unexplored, despite their importance for agricultural development success. This study examined these aspects using cross-sectional data from 115 randomly selected farmers through group discussions, questionnaires and key informant interviews. Results revealed limited community participation during the design of Meskebet Dam, although it provides multiple benefits to both upstream and downstream communities. The dam has more than doubled farmers' incomes and assets. Nearly 60% of respondents reported improved crop-livestock productivity, increased forage availability, reduced flooding, enhanced food supply, and increased income following the interventions. Almost 80% expressed support for continued dam-related interventions. Positive trends were observed in water management and community participation in maintenance. However, all farmers reported challenges, including sedimentation, waterlogging, poor drainage systems, weak water management, weak water user associations, and insufficient maintenance services. These issues have reduced water volume of the dam, limiting the cultivation of diverse crops. These findings offer valuable insights into farmers' behaviour regarding their production and management practices on the farms. The scarcity of literature on this topic presents opportunities for future research in similar contexts. These could also inspire further studies on the trade-offs between the benefits and risks of irrigation dams. Future studies could include cost–benefit analysis of sediment removal from earthen dams. Given these findings, government agencies, NGOs, and stakeholders should promote awareness among farmers and extension workers. Efforts and investments should be placed on regular physical and biological conservation measures and improved maintenance practices to ensure sustainable dam operations.</p>