The study was conducted to assess handling practice and microbiological quality of yogurt in and around Bahir Dar city. The data were collected through semi-structured questionnaire, focus group discussion, key informant interview, and laboratory analysis of yogurt. For this purpose, a total of 237 respondents were randomly selected to assess yogurt handling practices and major source of yogurt contaminants. Moreover, 61 yogurt samples were collected to analyze the microbiological quality of yogurt. The laboratory work was performed from February 2019-March 2019 in Gondar University Biotechnology Department laboratory. The results confirmed that the yogurt produced in the study areas from hand milked milk with milking frequency of twice (93.22%), and once (6.78%). On the contrary, only 45.2% of households were found practicing cleaning of the milking area. Besides, it was found that 70.6% and 44.4% of respondents produce yogurt from washed udder and teat in urban and peri-urban production systems. However, few respondents (36.72%) produce their yogurt from dried udder and teats with individual towel (9.6%), common towel (27.12%). On the other hand, the majority (63.28%) of the respondents produce yogurt from milk sourced from milk producers who weren’t practicing drying udder and teats before and after milking. Beside to this, number of milk producers (10.3%) used gourds for milk fermentation and storage equipment in peri-urban while plastic container was dominant in urban and peri-urban production system. The overall mean standard plate count, coliform count, staphylococcus, lactic acid bacteria, yeast and mold count and PH of yogurt produced in the area were 6.3±0.04 log10 CFU/mg, 6.13±0.04 log10 CFU/mg, 6.09±0.11 log10 CFU/mg, 6.3±0.06 log10 CFU/mg, 6.26±0.13 log10 CFU/mg and 4.16±0.02 respectively. There was significant difference between production system at (p<0.05) on lactic acid bacteria count. The yogurt samples which were produced from milk collected from unwashed udder, gourd