The municipal solid wastes (MSW) in Bahir Dar city are disposed in open land dumpsites locally named as Gordema .The existing waste disposal sites in Gordema are not properly engineered or managed and characterized by odor, smoke and green house gas emissions which cause pollution problems to the environment which can lead to serious health hazard. Solid waste characteristics and composition analysis are major factors which are considered as basis for the design of efficient, cost effective and environmentally compatible waste management system. In this study the characteristics and composition of municipal solid waste in Bahir Dar city were estimated and analyzed. Solid waste sampling and analysis from six waste collection areas in the municipality were carried out to determine the waste composition and quantity as well as proximate analysis (moisture, content, volatile matter, ash content and fixed carbon) was conducted to analyze the characteristics of the waste and to estimate the energy recovery potential of the city based on the American society of Testing and Materials (ASTM) standard. The result of the study shows high percentage of food waste 54.11%, yard waste 16.39%, others 7.8%, plastics 6.85%, textile products 6.04% , paper products 3.6% , bones 3.27% and inert 2.12%.Based on related categories of waste, wet putrescible 76.54%, dry combustible 3.6 % and 6.85 % of plastic products for energy recovery potential. The quantity of MSW generated from municipalities estimated to be 250 ton/day. This generation waste calculated to 0.7 kg/person/day. The municipal solid waste of the city has a potential energy source of 710kwh/day from wet putrescible products, 40 kwh/day from dry combustible waste products and 90 kwh/day from plastic products. 76% of the city municipal solid waste easily degrade by biochemical conversion and can yield an estimated amount of 6 million m3 /year biogas production. The waste composition, quantity of MSW generated and characteristics of the waste revealed anaerobic digestion and land fill gas utilization technologies are suitable to recover energy from the city municipal solid waste.