Agricultural extension is an approach to rural development and agricultural transformation in which training, demonstration and technology transfer are key to reducing rural poverty, ensuring food security, and sustainably managing natural resources. During recent decades, different extension approaches have been tested and validated by the Ethiopian government and non-governmental organizations to stimulate in the agricultural extension system (AES). The most recent was a German-funded project entitled “Integrated Soil Fertility Management Project” (ISFM ), which employed a novel approach to piloting and upscaling proven technology and best practice. The purpose of this study was to analyze and document the modalities of ISFM and illustrate its effects on technology uptake and dissemination. The study used a mixed methods approach to collect data. ATLAS.ti and SPSS were used for data management and analysis. Farmer Research and Extension Groups and Farmer Field Schools were found to be central to the participation process. Also, the ISFM was found to aid technology transfer and helped to increase grain and residue yields as well as farmer livelihoods. Based on these empirical findings, it is argued that the ISFM approach and technology should be integrated and institutionalized in the mainstream AES in order to promote their extensive application.