Ethiopia holds large potential for dairy development and has the largest livestock population in Africa; feed is one of the most important factors affecting animal productivity. In Ethiopia feed availability and feed cost will contribute to the low productivity of animals. So finding livestock feeds with low cost price is important; poultry litter is one of the low cost and also available feed as compared with other feed availebele in Ethiopia. It was found that there were significant differences among treatments when observed across periods in feed intake, milk yield and composition. It can, therefore, be concluded that poultry litter can be good replacement for resource poor producers. Hence, poultry litter as a supplement feed in dairy farm production should be sacaled up to increase the production and productivity in dairy farm industry; espacially in small scale farmers.