Bamboo is an ancient woody grass widely distributed in tropical, subtropical and mildrntemperate zones. There are about 1 200 species of bamboo in some 90 genera, of whichrntwo species namely highland and lowland bamboo are indigenous to Africa and widelyrndistributed in Ethiopia. Ethiopia has more than 1 million hectares of bamboo which isrn67% of African total. But compared to other bamboo growing countries Ethiopia is notrngetting equivalent economic advantage from the resource. Therefore, the aim of thisrnpaper is to show the benefit from the resource by developing the development andrnutilization model of bamboo and studying the establishment of processing plants forrnsome selected products in Amhara regional state. These two Ethiopian bamboo speciesrnare found in Amhara region. But like any other regions the resource is not used as an inputrnto processing plants that produce industrial and construction products. Some bamboorngrowing areas of the region are visited; data collected and the resource growing areas byrnzones and weredas are mapped. Domestic wood demand and supply is analyzed whichrnshows huge gap between the demand and the available supply - demand by far exceedingrnsuply. There is also increasing demand for bamboo and bamboo products in world market.rnGeneral Model is developed to show the required integration between different parties tornfacilitate the development and utilization of the resource in Amhara region from cultivationrnto end market. In addition, cultivation, micro and small scale, and medium and large scalernbusiness models are developed with their corresponding components. Three products â€“rnbamboo flooring, bamboo mat and bamboo incense stick are selected for analysis for theirrntechnical and commercial viability. Required facilities are determined, projectrnimplementation plan is scheduled, and layout is developed for these three manufacturingrnlines. Finally detailed economic evaluation is made and shows - with the initial investmentrnof Br. 41 million, the expected return will be Br. 94 million annually, with a payback periodrnof less than a year. Projecting this result to national level, the country can get more than Br.rn10 billion every year from the existing resource coverage. This figure could well be muchrnhigher if the cultivation and development efforts are made. The project is very attractive forrninvestment and will help to improve the development and utilization of the resource. Inrnaddition the area of coverage and productivity of the resource should be improved, so thatrnthe country will entertain the maximum benefit out of this new sector.