The study was conductedfrom October 2016 to' January 2018 in and around Gondar Town of Amhara National Regional State (ANRS) to map and analyze milk value chain in general and to analyze producers' preferences on the choice of milk market outlets in particular. Primary data were collectedfrom a total sample of246 producers by using a structured questionnaire. Key informant interview (KJI) and Focus group discussion (FGD) were held to collect primary data from other value chain actors by using checklist. Secondary data were also collected from national policies, documents, zonal and woreda reports. The overall result of the study shows that respondents produce mean milk yield of 25.8 litres/day (with a SD 28.7). The mean milk production per HH/day among the urban and peri-urban producers in the study area was 68 litres and 12 litres (with a SD of28.8) and 6.2, respectively. Majority of respondents (64.52%) in the peri-urban production system practiced milk processing whereas majority of respondents (86.66%) in the urban production system didn't process milk into other products. Raw milk consumption was highly practiced by majority (72.8 %) of respondents. Dairy producers, cooperatives, processors and consumers were found to be important milk market actors along the milk value chain. Cooperatives, processors and consumers were milk market outlets which were preferred by 21.14%,23.18%, and 55.28% of producer's respectively. The result of Multinomial logit model shows that producer's milk market outlet choice decisions (preference) were determined by age, total family size, livestock farming experience, price, distance from nearby market, payment in cash, payment in credit and support service. The primary milk market outlets in the study area were from producer to consumer. The Structure, Conduct and Performance analysis identified that the markets for milk in the study area was characterized as a non-competitive market which was characterized by a weak oligopoly. Generally, constraints milk value chain actors like unorganized milk market- with a dominant informal marketing system, lower processing