A study on characterization of cattle milk production, processing and marketing system was conducted in Gambella region based on data collected between September and December, 2009. A multistage sampling procedure was employed to select representative kebeles and households from Jekow and Gambella town. A total of 156 households were randomly selected using systematic random sampling methods. Questionnaire based formal survey as well as Participatory Rural Appraisal techniques were employed to collect both quantitative and qualitative data on cattle milk production, prioritizing the major production constraints and selection criteria for dairy cows and breeding bulls in the region, while Rapid Market Appraisal techniques were used to characterize the marketing system of dairy products. For verification of the survey based information, 24 households (12 lactating cows in each) were voluntarily selected from the two farming systems and were monitored (one month/ farming system) on related parameters. Two types of livestock production systems were identified in the district, namely crop-livestock mixed farming and urban production system. The current study was concerned entirely on both the production systems. The average cattle herd size of households was 16 heads, but it varied significantly (P