Finger millet (Eleusine coracana (L.) Gaertn) is a highly nutritious crop, predominantly grown in the semi-arid tropics of the world. Finger millet has a niche market opportunity due to its human health benefits and being rich in calcium, iron and dietary fiber and gluten-free. Ethiopia is the center of the genetic diversity of the crop. However, the productivity of finger millet in the country is low (<2.4 tons ha−1) compared with its potential yield (6 tons ha−1). The yield gap in Ethiopia is due to a range of biotic and abiotic stresses and socio-economic constraints that are yet to be systemically documented and prioritized to guide future production and improved variety development and release. The objective of this study was to document finger millet production opportunities, constraints and farmer-preferred traits in Ethiopia as a guide to variety design in improvement programs. A participatory rural appraisal (PRA) study was undertaken in six selected districts of the Southern Nation Nationalities People Region (SNNPR) and Oromia Region in Ethiopia. Data were collected from 240 and 180 participant farmers through a semi-structured questionnaire and focus group discussion, respectively. Finger millet was the most important crop in the study areas grown mainly for a combination of uses, including for food, feed and cash (reported by 38.8% of respondent farmers), food and feed (14.5%), food and cash (13.7%), food (11.5%) and food, cash, feed and construction material (9.7%). Hand weeding was used by 59.2% of the respondent farmers, followed by hand weeding and chemical herbicides (40.8%). Finger millet was mainly planted as a sole crop (reported by 97.0% respondents), mixed (1.7%) and sole and mixed (1.3%). About 75.6% of respondent farmers only practiced finger millet rotation with other crops. Respondent farmers indicated their source of fresh seed was from the Bureau of Agriculture (49.1%), farmer-to-farmer seed exchange (22.1%), own saved seed (7.5%), local producers (7.5%), research institutions (5.8%), unknown sources (4.1%), local market (3.5%) and cooperatives (0.42%). The total cost of finger millet production per hectare was calculated at 1249 USD with a total income of 2139 USD/ha, making a benefit to cost ratio of 1.71:1.00 and indicating the relatively low yield gains using the currently grown varieties. The main constraints to finger millet production in the study areas were drought stress (reported by 41.3% respondents), lack of improved varieties (12.9%), lack of financial resources (11.3%), small land holdings (10.8%), limited access to seed (10.0%), a shortage of fertilizers (5.4%), poor soil fertility (4.6%), shortage of draught power (1.3%), labour shortages (1.3%) and high labour costs (1.3%). The most important farmer-preferred traits in a finger millet variety were high grain yield, compact head shape, ‘enjera’-making quality, high marketability and early maturity, resolved through principal component analysis. The above-mentioned production constraints and farmer-preferred traits are strategic drivers to enhance finger millet productivity and need to be incorporated into Ethiopia’s finger millet breeding and technology development.