Wheat is a major staple food crop in Ethiopia. Several technologies, particularly of improved crop varieties, has beenreleased by different research centers, however, there has been limited use of improved seeds by small holder farmers.Hence this study was initiated to assess the source and distribution system on production and productivity of bread wheat during 2019/20 cropping season. The experiment was conducted using 260 sample households based on probability proportion to population size from three peasant associations of Dessie Zuria District (Woreda), South Wollo Zone, Amhara National Regional State. Primary data was collected through individual interview whereas secondary data was collected from relevant organizations. Semi-Structured questionnaire was employed to collect data through individual interview method on household characteristics, seed sources, and distribution and wheat production practices. The data was analyzed using descriptive statistics and SPSS software version 20.The result of the study revealed about 45% of the wheat seed source of the respondents were obtained from cooperative followed, by 40.76% from own saved seed 9% from local market, 3.7% from NGO and 1.54% from research center. The main advantage of the farmer using improved seed were high yield,disease tolerance, environmental adaptability which was 90% (n=234). The major reasons for improved seed insecurity of the farmerswere (64%)human consumption of the seed due to shortage of food, (18%)drought, and others. The informal seed source is a major seed source and important in wheat production at study areas. Therefore, any development program to improve the food security of the area should consider this important and dominant seed system and distributions. Key words: extension service, household, improved varieties, seed system.