This article explores the transformative potential of an agroecological project in addressing challenges faced by vulnerable smallholder farmers in Kembata Tembaro, Ethiopia. Four key indicators of farmers’ food security – enset stock, land sharing, agricultural biodiversity, and fodder production – were assessed before and after the project implementation. The findings reveal that the agroecological transition initiated by the project positively impacted all indicators, with longer-term beneficiaries experiencing more significant improvements. The transition resulted in breaking the vicious circle of food insecurity and in establishing a virtuous circle of improved livelihoods and resilience through enhanced productivity, reintroduction of livestock, and the production and marketing of fodder into local markets. The study also highlights the crucial role of traditional indigenous organizations, in identifying context-specific needs and in creating and sharing knowledge for successful agroecological transitions. Millions of smallholder farmers in Ethiopia are trapped in a vicious circle of food insecurity and vulnerability due to soil degradation, high population density, and depletion of natural resources. This research serves as a compelling call to prioritize and invest in agroecology as a key solution to sustainably intensify smallholder agriculture, conserve natural resources, protect biodiversity, and improve the livelihoods of vulnerable farmers in similar contexts.