Soil water management practices (terraces) helped to mitigate the 2015 drought in Ethiopia.

•Following a strong El-Niño, some regions of Ethiopia experienced major droughts during the 2015/16 agricultural season.•This study investigates the effect of terraces and contour bunds on yields during the 2015 drought.•At the national level, terraced plots have slightly lower yields than non-terraced plots.•Terraced plots acted as a buffer against the 2015 Ethiopian drought, while contour bunds did not.•This study provides evidence that terraces have the potential to help farmer deal with current climate risks.