Bread wheat (Triticum aestivum L.) is one of the major food and cash crops for smallholders in Ethiopia. However, the productivity of bread wheat remains low as compared to the world average yield due to the un improved varieties and inadequate quality seed. Study was conducted to assess the quality of bread wheat seeds; to compare quality parameters of different seed producer organization and to evaluate the effect of different seed sources and varieties on seed quality, yield and yield components. Seeds of Kakaba and Ougolcho were collected from the six seed producer organization viz. Ethiopia seed enterprise, Amhara seed enterprise, Adet agricultural research center, Avalo private research Seed Company, Ediget Bandinet cooperative union and also from ten farmers for the purpose of laboratory and field experiment. The study comprised of survey, laboratory experiment and field experiments. A survey was carried out using a structured questionnaire involving 80 wheat growing farmers especially in the dry season in three kebeles. The survey used as preliminary question for the achievements of laboratory and field experiment. A laboratory test was carried out on physical and physiological qualities of the collected sample seeds. The field experiment was laid out as Randomized Complete Block Design (RCBD) with three replications in factorial arrangement of two varieties, and six seed sources. The result of the survey indicated that 53.8% of respondents were grown Kakaba variety, 27.5% of respondents were grown Ougolcho and remain 18.8% respondents were Kingbird variety. Among the major reasons of variety preference, high yielding (75.0%), early maturing (6.3%), disease resistances (18.7%) were reported by the respondents. The result of the laboratory study showed that the interaction of seed sources and variety had highly significantly effect on pure seed, inert matter and moisture content while their effect on hundred seed weight was non-significant. Similarly, standard germination, seedling length, seedling vigour index I and seedling vigor index II were affected highly significantly by the interaction of seed sources and variety but, standard germination and speed of germination had highly significant affected by only seed source and variety. The result of field experiment indicated that number of off types, number of kernels per spike, biomass yield, grain yield and harvest index had significantly difference by the interaction of seed source and variety. The results of this study suggested the importance of using adaptable improved varieties taken from reliable source to increase productivity of bread wheat. However, it is necessary to further study considering more number of seed sources, and varieties at major wheat growing areas and different cropping seasons to make valid recommendation. Key words: Formal seed source, Improved seed, Informal seed source