Groundnut (Arachis hypogaea L) is a dicotyledonous plant which is widely distributed globally. It contains 48-50% oil and 26-28 protein, and is a rich source of dietary fiber, minerals, and vitamins. Poverty reduction and sustained economic growth require, among others, efficient post-harvest and market system, which in turn require identification and improvement in the post-harvest handling and of marketing constraints. This further needs the analysis and understanding of both farm /household and market level constraints impeding the proper functioning of the post-harvest handling and marketing system of groundnut. With this regard, the increased production accompanied by appropriate post-harvest handling and market system of groundnut has a direct effect on farmers'' income level. This study was carried out in Babile district of east Hararghe zone of Oromia region of Ethiopia on smallholder groundnut farmers for the purpose of investigating the post-harvest handling practices and market condition of groundnut in Babile woreda and reducing the information gap on the subject . Hence, this study was taken up to fill this knowledge gap.