This study was conducted to generate base line information on nutritional composition, physicochemical and functional properties of three capsicum varieties which are grown in Ethiopia.It was found out that protein, oleoresin, color value, paprika content, firmness and gel forming capacity of Marako fana(Capsicum annum)is significantly higher than the other two varieties while its tannin contentis less. On the other hand Potassium, calcium and iron content of Oda haro(Capsicum annum) is significantly higher than the rest two varieties. But all the three varieties had comparable moisture, fiber, vitamin C and capsacinoide. Hence, based upon the above result it was concluded that Marako fana is preferable for large scale production of oleoresin and paprika. It is good coloring agent and can be used in food formulation like sauces in a better maner. Oda haro on the other hand is nutritionally preferable for its potassium, calcium and iron. All have comparable pungency. In general this research will give an idea to reasrchers, investers, students etc.