The study was aimed to assess fishing activity, fish production and demand outlook in Ilu Abba Bora Zone, Oromia Region, southwest Ethiopia, to generate baseline data that would help in the proper and sustainable utilization of fish resources. Previous reports, field assessment, structured and semi-structured questionnaires and direct observation were employed for data collection. Five districts (Mettu, Yayo, BiloNopa, Bure and Sale Nono) were selected using purposive sampling technique. From each district, fishermen and households along and near riverine water bodies were selected purposively. The fishing activities of the area are aimed for subsistence by part-time fishermen and for local market during the dry season. The fishing gear commonly used are hooks of different sizes, traps (fish basket) and rarely gillnet. Birbira (Milletia ferruginea) is also used by fishermen in Sale Nono district. Though the severity of the constraints varies from one district to the other, the main fish production constraints in the area are low demand for fish, lack of awareness, lack of facilities, low profit, and long distance to market place. The fish demand and supply in the study area is unbalanced. Fresh whole fish, gutted and dried fish are mostly preferred fish products. Labeobarbus intermedius, Labeobarbus nedgia, Bagrus docmak and Oreochromis niloticus are the species preferred by consumers in the study area. Awareness creation and promotion of local fish farming is important to integrate fish in the community’s diet and to scale up fish demand and supply in the area.