Wheat production in Ethiopia has significantly increased over the past 20 years. Although estimates varied across data sources, all of the reviewed sources supported the same overall trends. However, the nature of grain markets in Ethiopia is expressed with a large number of marketing agents with variable purchasing, storage, transporting capacities and market shares. Hence, not all these participants are equally active in all markets. Besides, marketing margins and transaction costs remained high, and the capacity of private sectors is limited, the market institutions are weak and the market infrastructure remained fundamental problems in the marketing system. This study is designed to address the prevailing information gap on the subject and contribute to proper understanding of the challenges and assist in developing improved market development strategies to benefit of smallholder farmers, traders, and other market participants.