The study was conducted in Addis Ababa city, specifically in Gulele sub-city woreda 1 with arnfocus on Shiro Meda Shemma production and market areas where most of the actors ofrntraditional weaving products are operating.rnThe study aimed at analyzing of product upgrading in weaving value chain. The study used bothrnprimary data sources and has used descriptive data analysis method with tabularrnrepresentations, diagrams and graphs. Random sampling and purposive sampling techniquesrnhave been applied in order to fix the number of sample respondents.rnThe weaving products pass many phases such as production, processing, trading andrnconsumption and all actors are involved in the process of changing the raw materials andrnmaking available for consumption. The traders are the ultimate supplier for consumers, theyrnhave role to channel weaving products at a given price and those of consumers show growing uprndemand. The income of the actors in different stage show significant increments, however not forrnall.rnCredit arrangement system, advanced technology and technological tools, advertising and promotion as well as production with economies of scale improve the productivity of actors in short run. While in the long run including the issue in educational curriculum and create cultural industry linkage makes the sector efficient and effective in production, processing and trading of weaving products.rnKEY WORDS: Weaving (Shemma), Shiro Meda, Value Chain, Product Upgrading