Climate-Smart Agriculture (CSA) is a strategic approach that can mitigate the impacts of climate change on food and nutrition security (FNS). Despite extensive research on this intersection, CSA adoption is often treated as a single, aggregate variable, which may obscure nuanced realities and choices that farmers confront. Additionally, empirical evidence linking CSA adoption to FNS remains limited in drought-prone areas, which face unique challenges such as degraded soils. This study addresses these gaps by using cross-sectional data from 909 farmers in Ethiopia to examine the factors influencing CSA adoption and its impact on FNS, while controlling for placement endogeneity. Applying multivariate probit and endogenous switching regression (ESR) models, we account for selection bias and endogenous covariates. Results show that 84 % of sampled households adopt at least one CSA practice, and CSA adopters generally exhibit higher household dietary diversity scores than non-adopters. Specifically, households implementing soil fertility practices consume an average of four additional food groups daily, while those adopting combinations of yield-boosting and soil fertility practices or yield-boosting and soil erosion control practices consume approximately three additional food groups. In a similar trend, households adopting both soil fertility and erosion control practices have a moderately enhanced diet, consuming two more food groups than their counterparts. Notably, increased crop income emerges as the compelling pathway linking CSA adoption with improved FNS outcomes. In light of the challenges posed by degraded soils and recurrent food insecurity in drought-prone areas, this study underscores the need to support CSA adoption through enhanced access to information, training, infrastructure, and credit, fostering more resilient agricultural systems and sustainable land use.