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Widespread livelihood shocks and vulnerability in rural areas highlight the critical need to extend the provision of social protection interventions, as targeted to reduce vulnerabilities and poverty. Evaluating the real effects of social protection instruments on rural communities is an important concern for governments and policymakers. Hence, the objectives of this review were to examine the effects and challenges of social protection in rural Ethiopia. The review was conducted by synthesizing peer-reviewed journals, books, working papers, and organization reports, which were obtained through internet searches from Google Scholar, AgEcon, Science Direct, Taylor, and Francis. Interestingly, among the documents retrieved, 45 were included using eligibility criteria. Finally, the data were presented and narrated in texts. The review outcome indicated that Idir, Zakat in Afar, community-based health insurance and productive safety net program were important to reducing risk vulnerability, poverty, and food insecurity in the rural community. Moreover, a productive safety net program has both positive and negative effects on beneficiaries’ social, economic, and environmental development. In a nutshell, social protection services play a vital role in addressing poverty, hazardous events, and vulnerabilities that affect livelihood. Therefore, concerned bodies should be focused on targeting rural communities to achieve food security and health services through social protection.