A combination of cross-sectional, longitudinal and retrospective study was conducted in Guto Gida (Urban and Peri-Urban) and Leka Dullacha (rural) districts, East Wollega zone from December 2014 to March 2015 with the objectives to assess smallholder dairy cattle production systems, identify major reproductive health disorders and estimate milk production performance of dairy cows in smallholder dairy farms in and around Nekemte town. A total of 105 households were individually interviewed with follow up of 36 pregnant and 56 milking dairy cows. The chemical composition and nutritive value of four different hulls of pulse crops were analyzed. An average family size, land holding and herd size of the respondents were 6.07±2.11persons, 2.34±1.9 hectare and 12.19± 7.6 heads of cattle per household respectively. Land shortage, seasonal feed scarcity, ineffective crossbreeding and disease prevalence were among the major constraints of smallholder dairy cattle production in the study area. Trypanosomosis, Lumpy skin disease, Black leg, Pasteurellosis, Anthrax, Foot and Mouth Disease and ecto-parasite were the prevalent diseases and parasite of cattle in the study area. Out of 36 reproductive cases, 23(63.88%) of the cases was normal parturition with no history of reproductive health problem. The other, 13 cases were reproductive health disorders. From a total of 129 dairy cows (36 terminated pregnancy) 13(36.1%) were having at least one of the reproductive health disorders. Retained fetal membrane was frequently observed with the magnitude of 7(19.44%) among the cases, followed by abortion (8.33%) and dystocia (5.55%). A retrospective clinical case based prevalence of reproductive health problems at Guto Gida and Getema vet clinics were 56(2.1%) and 164(7.13%) respectively. The average daily milk yield of local Horro, HF cross and Jersey cross cows was 3.1±0.88, 8.7±0.55 and 5.8±1.68 liters per day. Both management system and herd size significantly affect lactation length and milk yield (P