The study was conducted in Negele Arsi district, West Arsi Zone, Oromia, Ethiopia to identify honey value chain actors, functions, services providers, major constraints and opportunities of beekeeping. Quantitative and qualitative data was collected by desk research, observations, survey and interview with different actors in the chain. The collected data were analyzed using descriptive statistics such as percentages, frequencies, mean and standard deviations using SPSS version 19 and Excel sheets. Whereas, the data collected through interview was analyzed using narration and interpretation. The value chain map was used to get the clear picture of the whole honey market chain and SWOT analysis tool was used to analysis the strength, weakness opportunity and threat of the beekeeping sector in Negele Arsi district. The study result showed that, the major value chain actors in the study district were producers, local collectors, wholesalers, retailers, local drink makers and final consumers of the product were the main chain actors, while Negele Arsi livestock development and fisher resource office, Adami Tulu Agricultural Research Center, IDE (International Development Enterprises) and SNV Ethiopia were the main chain supporters and service providers. Six main alter native market channels were identified for honey marketing and honey follows the six main routes from the point of its production to its consumption. The major constraints of beekeeping identified in the study district were inaccessibility to beekeeping equipments, inadequate of beekeeping knowledge and skills, shortage of bee forage, prevalence of honeybee pests and predators, lack of organized market channel, pesticides poisoning, lack of adequate extension services, honeybee colony absconding and migration and shortage of honeybee colony. Despite these, there are also opportunities such as availability of area closures, high demand for honey at national, regional and international market, presence of government and non-government organizations working on honey, the existence of conducive policy framework in apiculture sub-sector, existence of farmers with indigenous knowledge and skills who are interested to accept improved technologies, existence of reforestation plan and existence of different flowering plants are some of the opportunities for honey production and marketing by most of the producers. Therefore, efforts should be geared to promoting capacity building through training, promoting modern apiculture technologies, access extension service, access to financial support and market promotion and establishment of beekeepers cooperatives are recommended.