The purpose of this study was to investigate the effects of industry extension service provision on the performance of MSE in Bahir Dar Zuria Woreda. This study employed a mixed research approach. The researcher used descriptive and explanatory design to investigate the relationship and the Effect of industry extension service on performance of MSE. The samples of the study were 261 respondents which composed of 253 had been taken from MSE operators of Bair Dar Zuria Woreda, 5 respondents from Bair Dar Polytechnic College and 3 respondents from Bahir Dar Zuria Woreda Labor and Training Office selected employees were participated. This study employed probability sampling technique especially simple random lottery and stratified sampling method. To collect the data from each participants, close-ended questionnaires (scales), interview question and document analysis were used. The methods of data analysis were both descriptive and inferential statistics. Descriptive analysis of the data was conducted via percentage, mean and standard deviation. Whereas, the inferential statistics such as Pearson correlation, and standardized multiple regression were employed. Interview question and document analysis were explained in narration ways. Industry extension service that provides to Bahir Dar Zuria Woreda MSE is not sufficient, not scheduled, not organized and below the standard (one trainer to 20 enterprise). The results of multiple regression indicated that technical support, technological support, entrepreneurial support, and kaizen support collectively explained 89.1% of the variance in the performance of MSE, and ANOVA test (F (179.750) = 498.173, p = .000). Therefore, Bahir Dar Polytechnic College better to assign enough numbers of trainers to Bahir Dar Zuria Woreda MSE to provide IES and the trainers also identify the real problems of the enterprise especially on four dimensions which have to be organized and timely scheduled. BDR Polytechnic college has to provide IES more focuses on technological support, entrepreneurial support and kaizen support even if all the independent variables have positive and significant effect on the performance of MSE.ANRS Labor and Training Bureau, North Gojjam zone and Bahir Dar Zuria Woreda Labor and Training Office must be communicated each other to solve Bahir Dar Zuria Woreda MSE problem about industry extension service and its implementation to elongate their life.