ABSTRACT: Women play a central role in strengthening smallholder farming resilience but often gain limited benefits. This study examines socioeconomic challenges and identifies opportunities for women coffee farmers in Sheda Kebele, Southwestern Ethiopia. Data were collected from 83 women participating in a pilot carbon credit project to investigate adoption of climate-smart practices and changes in household coffee income using regression and non-parametric analyses. Results revealed a statistically significant decline in household coffee income between 2018–19 and 2023–24, driven by climate stressors, rising labor and transport costs, and market volatility.. Women face high labor demands, limited credit access (25%), and inadequate climate-focused extension support (69% accessed, only 15% aware of climate finance). While cooperative leadership appears relatively gender-balanced, decision-making power remains unequal, especially in tree and land management. Traditional predictors, such as land size and education, statistically insignificant determinants of income or adoption, with unmeasured factors like market dynamics and trust in cooperatives and extension services playing a larger role. Financial literacy was inversely associated with willingness to adopt, suggesting heightened risk aversion among informed farmers, whereas younger women and larger households were more willing to engage in climate initiatives. Findings highlight the need for gender-sensitive policies integrating immediate income stabilization, improved access to climate finance, and equitable decision-making to foster resilient, inclusive coffee systems.