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Improving the poverty status of smallholder dairy farmers in Eritrea necessitates an increase in dairy production efficiency. This study investigated the influence of empowerment programs on small­holder dairy production, specifically those aimed at fostering the development of knowledge and skills for both male- and female-headed households. The Abbreviated Women Empowerment in Agriculture Index (A-WEAI) and an instrumental variable esti­mator (IVE) were used to analyze data collected from 379 households in three Eritrean communi­ties. The findings show that male household heads are more empowered than their female counter­parts. Analysis at the Zoba (regional) level showed disempowerments for all households in Anseba (65.42%), followed by Debub (57.02%) and Maekel (33.11%). Empowerment had a positive effect on labor productivity among male- and female-headed households, resulting in increases of 11.50% and 18.49%, respectively, and on poverty reduction, with empowerment increases of 10.57% and 9.91%, respectively. In addition, the level of educa­tion, the farmers’ age, and the price of milk had a negative effect on labor productivity among male and female dairy farmers. Dairy experience, labor cost, and membership in a cooperative had a posi­tive effect on the labor productivity of male farm­ers. Herd size (with a positive coefficient), type of dairy production practice, and perception of gov­ernment policies on dairy farming (with negative coefficients) were essential factors that affected labor productivity among male and female dairy farmers in Eritrea. Land rent, frequency of exten­sion visits, milk unit price, dairy experience, and number of lactating cows affected asset accumula­tion among Eritrean dairy farmers. We recommend context-specific innovative empowerment strate­gies to boost productivity and market access and reduce poverty, particularly for female farmers. Gender disparities in Eritrean dairy farming show that women face greater disempowerment. Involv­ing more women in these strategies can reduce the gender gap, promote gender equality, and support sustainable development in Eritrea.

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