Rice is a new crop for Ethiopia. There is an immense potential rice production area and high consumer demand. However, the rice sector is not fully developed as compared to the potential. Many factors were attributed to existing inefficiencies in rice production and utilization. This study mainly focus on the challenges, opportunities and entry points for infusing further innovation for upgrading the rice value chain. Identification of actors, their role, linkage, attitudes, habits and practices in the value chain; analyzing the institutional arrangements and enabling environment that affect the functioning of the value chain; and identifying recent innovation activities and their immediate outcomes were also the focus of this study. The study analyzes the entire rice value chain from input supplier to the consumer. Therefore, this study can provide an insight on required efforts to enhance the production and utilization of the crop at larger scale to ensure food security and self-sufficiency. The information generated will also help research and development organizations, traders, producers, policy makers, extension service providers and, NGOs.