This study was conducted to assess the ecotourism development potentials and challenges inrnJibat forest and its environs, West Shewa Zone of Oromia. Data was generated throughrndiscussion with local community, interviews with relevant stakeholders and field observation. Arnperception of the local community towards ecotourism development was measured using likertrnscale measurement. The target populations included for this study were experts from Jibatrndistrict culture and tourism office and Jibat Gedo district forest and wildlife managementrnenterprise, key informants from community representatives as well as the local community livingrnaround the ecotourism site to be studied. The sample was selected purposively and randomlyrnbased on the nature of research questions. The data collected was analyzed and summarizedrnusing frequency tables, percentage and narration.rnThe study found that the Jibat forest possesses huge ecotourism resources includingendemicrnfloras and faunas, bird cliff, mountaineering, trekking, waterfalls, pleasant weather conditions,rnand cultural values such as irrecha festival, horse riding and racing, kocho processing,rnhospitality of the local community. The development of ecotourism in the study area was, owingrnto be limited by lack of infrastructure facilities and services, poor marketing and promotion,rnand poor linkage among tourism stakeholders. The local community has positive attituderntowards ecotourism development assuming that it will benefit them economically, socially andrnenvironmentally. The study concludes that there is a high potential for ecotourism developmentrnin the study area. Therefore, in order to alleviate the challenges the existing resources should bernprotected, basic infrastructures should be developed, local community training and promotion ofrnthe resources should be made.