This study analyzes textile and garment sub-sectors of Eth iopia within the g lobal value c hain srnframework using both pi' imary and sccondary data. Primary data were collected through face-to -rnface firm level survey. GVCs r,'amework include s the analysi s of gove rnance, upgrading andrnparticipation level in the value chai n. In the GVCs literature, there are five types of governancernnamel y Market, Mo dular, Relatio nal , Captive, and Hierarch y. There are also fo ur upgradingrntypes in GVCs: product, process, functional and chain upgrading. T he participation level in thernGVC is the backward and forward integrat ion in terms of the foreign and domestic value addedrncontent in the g ross expo rt. Regard ing th e governance structure, this study found that Ethiop ianrntextile and garment sub -sector is unde r capt ive g lobal va lue chai ns governance structure. Underrnthi s type of governa nce structur e, the s ub-se ctor ha s a potential for product and processrnupgrading . T he captive GVCs governa nce str ucture limits the sub-secto r potential for functionalrnup grad in g. However there is a variation in the share of gross export co ntents at industry level;rnthe garment industry showed low domcstic value ac'ded and textile industries have high domesticrnva lu e added , the sub-sector in gencra l has more domestic va lue added share in the gross exportrncontent. The sub-sector is hi g hl y link ed with USA and EU market in term s of forward inteerationrnan d it ha s intense link with As ian ma rk ets in backward integration.rnKeywords : GVes, Governance, Upgrad in g, Participation