A cross sectional study was conducted from October 2015 to September 2017 on skin and hide defects, handling practice and marketing channel in east and west Hararghe zone, Oromia region. In this study, both purposive and random samplings were used to select the districts (Babille, Haramaya, Chiro and Chiro zuria), PAs and households from the two zones. A total of 247 respondents from households, butcheries, municipal abattoirs, middlemen and local skin and hide collectors were interviewed. Direct wet skin and hide observation and follow up investigation was also made on 62 cattle hide, 86 sheep and 99 goat skins from 136 different sites to collection centers along the marketing channel to the tannery plant. The result of the study showed 17% of the respondents had no understanding on contribution of skin and hide in national economy and only 34% of the participants had sold skin and hide to local collectors and traders whereas 12.1% of the participants preferred to use skin or hide for coverings of home materials. The study also revealed involvement of illegal traders, poor infrastructures, uneven distribution of collectors were some of the main challenges in skin and hide marketing and rejection at tannery because of damages during flaying and preslaughter factors like skin diseases and ectoparasites, poor preservation techniques, storage and transportation methods were identified as the main factors downgrading skin and hide. Of the 247 wet blue skin and hides examined at Mojo tannery PLC only 4.9% fall in export level grading score (grade 1-4), 27.1% were rejected and the left fall in grading level supplied to local market. Hence, there was knowledge gap in skin and hide handling practices and poor market access. Therefore, awareness creation and building link amongst producer to collector, trader and tannery were recommended.