The main objective of this study was to explore trends, challenges and opportunities of domesticrntourism development in Ethiopia based on stakeholdersâ€™ perspective. The study employed mixedrnmethod design where both quantitative and qualitative data were collected from purposelyrnselected respondents. Quantitative data was collected from 159 participants drawn from keyrntourism stakeholders including governmental bodies, tourism and hospitality service providingrnentities, industry associations, academicians and experts based on purposive and convenientrnsampling techniques. Qualitative data was collected from 10 key informants, two each fromrnofficials, senior experts, academicians, tour operators and national tour guides based onrnpurposive sampling technique. Quantitative data was analyzed using descriptive statistics andrnexploratory factor analysis, while qualitative data was analysed through content and discoursernanalysis. The finding reveals that the trend of domestic tourism in the country is not developedrnand also stricted to some travel purposes particularly to religion. Limited tour and travel culturernof citizens, government strategic directions and priority problems and capacity related problemsrnincluding research gaps on the sector and absence of appropriate institutional structure havernbeen identified as major challenges facing domestic tourism development in Ethiopia. On thernother hand, availability of abundant tourism resources and potentials were identified as mostrnenabling conditions to develop the sector.rnKey Words: Domestic Tourism, Trends, Challenges, Opportunities, Stakeholders and Ethiopia