Typically, the local construction industry exploits indigenous material like timber for different construction activities. Timber is a major building material that is frequently used for key activities like flooring, formwork and panel system in Ethiopian construction. Currently, bamboo has shown huge potential as an alternative timber material with high potential to influence the environment with respect to minimizing deforestation, increasing reforestation and reducing carbon footprint. It can enhance productivity and is an abundant resource throughout the country. The lifecycle cost component to investigate its cost effectiveness of these products manufactured at factory level, as continued effort of current research and industry practice, this thesis investigates lifecycle of bamboo products for utilization on construction purposes. This study followed an inductive research approach to achieve the study objective. Questionnaires and interviews were used as main data collection instrument through purposive sampling and snowballing method. A case study analysis was also carried out on selected bamboo producing industries. The results from the questionnaire were analyzed using relative importance index (RII). The case study and interview data were analyzed using quali tative data analysis. The research results showed that limited recognition & policy incentives from the government, lack of mechanism to transfer bamboo technology, lack of code of practice, inadequate research & innovation on bamboo construction method, inadequate processing techniques, limited readymade bamboo producing factories that meet the local market, deficiency of bamboo related training & dissemination methods, limited marketing & promotion in utilizing bamboo, deficiency of professional knowledge and technical skills of employee as main constraints in utilizing bamboo products for construction purposes. This research also asses bamboo is good resource on environmental, social, economic, sustainability, and cost analysis done by direct cost analysis method the results shows bamboo is cost effective than timber . The finding of this research is expected to improve utilization of bamboo products as an alternative material for use in construction purposes, import substitution and promoting local manufacturers. Key words: Bamboo, Construction Product, Lifecycle Cost Analysis, Sustainability