Production and commercialization ofNTFPs by forest fringe communities have invaluable importance inrnterms of both rural li velihood security and resource conservation, perspectives. It ensures food availabilityrnparticularly during slack periods and prov ides cash income when other income such as coffee is nonexistent.rnThe study area, Jimma zone of Oromia regional state, is onc the natural afromontane forest zonernfound in south west Ethiop ia with rich potential for the production and commercialization of NTFPs asrnalternative approach to livelihoods improvement and forest resource conservation. The main objectives ofrnth is study were to assess the state of production and utilization ofNTFPs in the study area, and to identifyrnmajor production and marketing challenges.rnThe analysis was made using both primary and secondary data. The primary data were collected in 2008rnfrom 105 sample households selected randomly after their proportion was identified for the sample kebelesrnand wealth groups. There FGDs conducted were also supplemented by data collected from key informantsrnand voluntary discussants. Descriptive statistics and statistical tests (chi sq uare test and t-test) were used tornexamine the association between soc ia-demographic variables and different NTFPs production decision.rnPest incidence, lack of inputs, shortage of land and limited ski lled personnel, absence of irrigation and thernexpansion of chat are the major production constra ints identified. The major marketing challengesrnidentified in the area include lack of transportation facility, absence of standard ized measurement, lowrnmarket demand, lack of developed processing technology, absence of wholesalers and limited exportrnmarket.rnIt was found from the analysis that the different wealth groups depend on NTFPs to varying degrees withrnthe rich group relatively well integrated to both production and commercialization of valuab le NTFPs suchrnas honey and fruits. The poor, on the other hand, heavily relies on root crops mainly due to the foodrnsecurity they offer in off-peak periods and partly due to the low cost of inputs compared to beekeeping, forrnexample. Changes in important livelihood assets over the past five years indicates increment for the richrnmore followed by medium and stagnated or decl ined for the majority of the poor.rnThe chi-square test of association between different socia-econom ic variables hypothesized to affectrnNTFPs produetion decision found significant for level of education of the head, size of land, access torncredit, sex and extension contact and the production of honey at 95% level of confidence. Other variablesrnlike family size, age of the head, leadership role of the head, were found to have weak association with thernproduction of either honey, fruits or spices at (p