<p>Poverty and environmental degradation are two of the most pervasive global issues today and among the pressing problems catching the attention of governments, development practitioners and researchers for decades. This research was conducted on the magnitude of and the interaction between poverty and environmental degradation in Girar Jarso district of North-central Ethiopia. To this effect, 377 sample households were randomly taken for the survey. Both primary and secondary data sources have been used. The quantitative data collected in the field survey was edited, coded, and entered into the statistical package for social sciences version 26 for analysis. Inferential statistical techniques such as chi-square test and regression model as well as descriptive statistical techniques like independent samples t-test were used to analyze the data. In addition, such poverty assessment indices as the Foster-Greer and Thorbecke as well as the multidimensional poverty index were employed to analyze the consumption and multi-dimensional poverty, respectively. The finding of the study shows that about 28.3% of households in the study area were consumption poor and the poverty gap was about 8.1% while poverty severity was about 2.6%. Furthermore, the multidimensional poverty in the study area was 55.6%. From this, multidimensional headcount ratio was 92.2% while multidimensional intensity was 59.8%. The above figures show the magnitude of poverty in terms of both monetary and multidimensional aspects, which force the poor to consume and exploit environmental resources. The mean consumption of these environmental resources was higher for poor households as compared to non-poor households. The study identified that there is a nexus between poverty and environmental degradation in the study area.</p>