Ethiopian vegetable production is one of the most potential sub sector that provide multiple advantages in supporting local, national and international economies. A survey was conducted in 2010 to analyze vegetable value chain in Ethiopia. Key informant interviews, focus group discussions and observation were used. Data were analyzed by descriptive statistics under guiding line of Michel Porter Qualitative value chain model. Producers incurred 0.67 birr (17.40% of the total costs) to produce & sell a single kilogram of fresh tomatoes to Mekele whole sellers. The remaining 83.60 % of the total cost was costs of distribution covered by Mekele traders. A single kilogram of tomatoes gave a net benefit of 1.58 birr, in its path from farmers to consumers. Producers obtained only 13.29% of the benefit. Vegetable sector was constrained by market insecurity, drought, and pest incidence, poor input system, lack of collaborations both within and between chain actors. Promotion of vegetable production should be attached with secured market by creating workable environment for collaboration of each value chain actors and maximize the performance of the sector.