The study was conducted in three dairy production systems of South Wollo Zone, Amhara National Regional state. The data were collected with the following objectives: to assess and monitor milk production, handling, processing and marketing practices. A single-vis it-multiple-subject formal survey was used to collect data. A total of270 households, 180from rural, 60from peri-urban and 30 respondents from urban were individually interviewed. Monitoring was done on 54 (36 from rural, 12 from peri-urban and 6from urban) dairy producers. Mixed crop-livestock production system was the typical feature of the farming system in both rural and peri-urban dairy. Cattle breeds kept by farmers in the rural and peri-urban areas were highland local Zebu breed and local Zebu Friesian crossbreeds, while only Friesian crossbreeds were kept in urban study area. 36.7% reported that crop residues, was major feed source in rural study areas. Cows were hand milked in all the three production study areas. In rural study area 100% washed only their hands and milk vessels but not the udder before milking. 68% and 100% in peri-urban and urban areas respectively, practiced the complete sanitation procedures including udder washing. 70% in urban areas used individual towels where as 30% used common towels. 68.3 %, in peri-urban areas used common towels. The survey results for the milk yield of local and crossbred cows in rural study areas were 3.12±.10L/day and 1. 19±0.8L/day and 6. 77±0.28L/day and J.8J±0.J9L/day during the wet and dry seasons, respectively. Milk yields in peri-urban study areas for local and cross bred cows were 3.88±0.35L/day and 0.38±0.13 Lrday and 7.42±0.36 Lrday and 4.03±0.36 Lrday during the wet and dry seasons, respectively. Survey results for Milk yields of cross bred cows in urban study areas were 11.87±0.52 Llday and 9.17±0.39L1day respectively. Monitoring results jar local and cross bred cows in rural study areas were 2.92±0.55 L/day and 2.4±0. 79 and 4.3J±0.9J and 2.4±0. 79 during the wet and dry seasons respectively. Monitoring results for local and cross bred cows in per i-urban study areas were 3.32±0.22 and 2.9±0.52 and 4.18±1.54 and 3.9±1.4 during the wet and dry seasons respectively. Monitoring results for cross bred cows in urban study areas were 11.26±1.49 and 10.68±1.49 during the wet and dry seasons respectively. In both the survey and monitoring results, there was a difference of (p<0. 05) between breeds and the three productions systems thus indicating that milk yields are significantly dependant on breeds and production systems. In monitoring studies of churning times (p>0.05) indicated no significant difference between production systems where as studies of the amount of milk churned at a time ((p<0.05) indicated significant differences between production systems. 68.9%, 93.3% and 26. 7% in rural, peri-urban and urban study areas respectively used gourd as the storage vessel and 53.9%, 33.5% and 6.7% used gourd as the churning vessel respectively. 43.9%, and 15.5% in rural and peri-urban study areas used clay pot also storage purposes respectively. Black leg, bovine pasteurellosis, mastitis and bloat as major diseases. Low milk yield and Poor quality of milk as one of the constraints for milk processing. 38.8%, 38.8% and 80% respondents in rural, peri-urban and urban study areas reported the 'Producer-Individual' marketing channel. 61.7%, 61.7% and 20 % respondents in rural, peri-urban and urban study areas reported the 'Producer- Retailers-Final consumer' marketing channel. Dairy production in the study areas can be improved by solving constraints such as feed supply, sanitation, introduction of cross breeds in rural and peri-urban areas, veterinary care, milk processing facilities, Al services, extension services and developing efficient marketing systems.