Abstract The main objective of this study was to assess opportunities and challenges and livestock production practices under zero grazing system of livestock in the selected learning Watersheds of West Gojjam Zone of Amhara Region.. The study was conducted in the learning watersheds of west Gojjam Zone, Amhara Region; namely Debre Yakob and Aba Gerima. The study watersheds were selected based on multistage sampling technique. A total of 200 households were selected based on systematic random sampling technique. The collected data was coded and entered into the computer by using SPSS V.20 program for analysis of descriptive statistics like mean, mode, standard deviation and frequency. Statistical tests like independent sample t-test and chi-squared tests were done to test mean and occurrence comparison among adopter and non-adopter farmers of zero grazing system.Likert scale, with five point measurements scale technique was used to scale and quantify the level of farmer’s perception. The analytical result showed that the current implementation approach of zero grazing was through money enforcement mechanism, which ranges from 50 to 200 EB penalties per grazing animal per day. The research result revealed that there is a good understanding and perception on the disadvantages of free grazing and the advantages of zero grazing. There are also challenges of zero grazing implementation which were shortage of land for private grazing and feed production and shortage of animal power source for crop production. On the other hand the watershed development created an opportunities for the production of improved feed at different niches, government focus on the cross breeding, experience of livestock sharing and availability of ground water. Adoption of zero grazing can be successful without any enforcement mechanism, by increasing training and awareness creation works on the zero grazing, increasing forage and water availability, improving local livestock breed and increasing farm mechanization for crop production should be planned and implemented. Key words: Zero Grazing, Free Grazing, Learning Watersheds and West Gojjam Zone