Tea, in Ethiopia, is grown in south west parts of the country. It is produced by estates namely Ethio Agri Ceft, East Africa PLC and other newly established tea plantations. They tried to cover the capacity of their processing factory by out growers surrounding tea plantations. Problems the out growers faced and opportunities they have not yet studied in detail. Therefore, this research attempted to generate useful information on tea out growers’ constraints and opportunities in tea production and marketing, which helps governmental institutions to assess their activities and redesign their operations. The research was done by interviewing tea out growers surrounding the two major tea plantations namely WushWush and Gumero in south west Ethiopia. Data was analyzed using descriptive statistics and constraints were analyzed using Relative Severity Index techniques. The data was collected from 120 randomly selected households surrounding the two major tea plantations. The result showed that out growers on average has experience of five years and allocated 1.37 ha of land to produce tea. Tea is among the most fertilizer and labor intensive crop of all the plantation crops. They plucked on average 295 kg/ha export standard or 731 kg/ha lowquality standard green tea leaves in one harvest in the main season. Relative Severity index analysis revealed that out growers’ major constraints of tea production were high price and not timely availability of inputs, shortage of inputs, high cost of production, need intensive plot management, lack of capital, no government extension service and lack of training. However, they have good opportunities in obtaining frequent income almost throughout the year, high cash income, low risk of animal damage and theft. This study concluded that out growers allocated 33% of total land owned to grow tea. Plucking was the main cost in tea production which took 30% of income from green tea leaves. On average, out growers obtained 2600 kg/ha/year green leaves which was much below the two tea plantations 3500 kg/ha/year. One of the main constraints of tea growing was high cost of production. However, they were benefited more from getting year round cash income, low risk of theft and animal damage.