Abstract: Evaluation of milk value chain and quality of milk were assessed in selected districts of surrounding Addis Ababa from September 2016 to April 2017. A total of 180 randomly selected market-oriented smallholder dairy farmers were involved in a cross-sectional study that was carried out by way of questionnaire survey, rapid market appraisal, farm inspection and group discussion. The overall mean family size of respondents in this study was 5.63  1.926 persons with average livestock holding per household of 23.93 ± 11.755 animals. Cattle were the predominant species representing 84.3% of the total TLU.