The purpose of this study is to understand the causes, challenges and opportunities of women informal clothe vendors in Bahir Dar City. To meet the objectives of the study, the researcher used qualitative research approach with case study design. The study was selected by availability sampling technique to select the study area and the participants were selected by using purposive sampling technique. The primary data were collected through semi structured interview; focus group discussion and through key informant interview until the data get saturated. The collected data were analyzed using thematic data analysis technique. The finding of the study revealed that women informal clothe vendors have different pushing and pulling factors to engage in informal clothe vending these are; economic causes like financial constraint, dissatisfaction with earning and unemployment. Social causes are lack of access to education and educational failure and sexual harassment. There are also lots of challenges in their job. Concerning their economic challenges, they have financial constraints, housing problem, market instability and looting. Looking problem, sexual violence, sexual harassment, gender-based violence and lacks of respect from the community were identified as the socio-cultural challenges meted out to them. Challenges that they face related to illegality include health problem, conflict against formal traders, weather condition and Lack of legal protection. Lack of credit access was identified as an institutional challenge meted out to women informal clothe vendors. Psychological problems such as problems of their children, hopelessness and emotional abuse were identified as the main challenges in their job. Even though there were many existed challenges that affect women informal clothe vendors, there were also benefits and opportunities that they get while they were working street vendors as this study indicated. Such as, source of survival, freedom of work, free from formal taxation and developing effective communication. Based on the study findings the following implications were made Providing awareness creation programs and training by trade offices that enable vendors pay low amount of tax and the city municipals should enable women informal vendors to enter into formal sector and to enhance their health and other social wellbeing, built and access shops at low level of rent. Key words: women, informal, clothe, vendo