The agricultural sector greatly influences socio-economic performance in Ethiopia. Specifically Apiculture plays a significant role in enhancing food security through commercialization of rural households. This study was intended to analyze farmer’s demographical, socio-economical, environmental and institutional factors influencing of honey production, to identify farmers’ honey production system (hive type) and to describe the farmer’s major challenges and potential of honey production in Chilga district. Both quantitative and qualitative data were collected from primary and secondary sources by using semi-structured questionnaire in 2018/19 production season from a sample of 126 household selected by using systematic randomly probability proportional technique. Descriptive statistical analysis method such as frequency, mean, standard deviation (SD), maximum, minimum and percentage was employed. In addition, inferential statistical analysis such as independent t-test and one-way ANOVA were employed. Furthermore, econometric model analysis i.e. multiple linear regression model was used to identify the determinants of honey production. Results from descriptive statistics show that the majority of beekeepers were males 119 (94.4%) and mean of family size was 4.22, and mean of experience of beekeeping was 5.97 years. The result shows that the type of hives were 114 (90.5%) traditional; and 3 (2.4%) modern, respectively but transitional hive access was not available. Results from econometric model analysis of (R2) show that 0.5359 and then p-value was below 1% level of significance like experience of beekeeping, hive type, extension contact, marital status, and distance. In addition, p-value was below 5% level of significance like sex, family size, amount of bee colonies, credit use and the end below 10% level of significance was disease of honeybee. Off this finding traditional hive use rather than modern, less extension contact, pest and disease, less credit availability, shortage of bee forage was major constraints and as well as most of the future improved problems were extension agent and beekeeper meeting frequency will be increase, honeybee supplementary food training will be increase, farmers use modern hive rather than traditional and transitional hive, access of market information and credit access availability were to recommended future improvement. Key word, determinants, honey production, honeybee, Chilga district, challenge, opportunity