The majority of farmers in Ethiopia are smallholder farmers. However, smallholder farmers Participation in markets remain low due to range of resource constraints such as capital, inputs and technology and their exposure to risk. Therefore, this paper was aimed to review different literature determinants of smaller holder farmers’ market participation and outlet choice decision in Ethiopia based on desk review method. The review reveals that demographic and socio-economic factors, institutional factors, market factors, technological factors, transaction cost and risk were determinants of smallholder farmers’ market participation decision in Ethiopia. On other hand, the determinants of smallholder farmers’ market outlet decision also reviewed. Accordingly, household characteristics, transaction costs, product characteristics, household asset and trusts on buyers were determinants smallholder farmers’ market outlet choice in Ethiopia. Therefore, government and concerned bodies should improve rural infrastructure, smallholder farm productivity through technology, market information, promotion of farmer associations to enhance market participation and outlet choice small holder farmers in Ethiopia.
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