Dairy industry is one among the important sector in India. India is the largest milk producer, accounting for more than 18.50 per cent of the world’s total milk production. In India 80 per cent of milk is marketed through the highly fragmented unorganized sector, which includes local milk vendors, wholesalers, retailers, and producers themselves. On the other hand, the organized dairy industry, accounted for about 20 per cent of total milk production, comprised of two sectors: government and co-operatives. Even though co-operatives provide a remunerative price to the producer, the unorganized sector plays a major role in milk marketing. The present study identifies the major factors influencing the consumers to prefer milk products and also to analyse the awareness level of the consumers in Tamil Nadu. Totally 120 sample respondents were selected. Garrett’s rank analysis was done to analyze the factors influencing the consumers buying behaviour of milk and its products. The results showed that quality, price and taste were the most influencing factors to buy the milk products and the least influencing factors were flavour/colour and packaging of the products. Ghee was the major product preferred by the consumers .Quantity of milk showed significant relationship between age, monthly income and family size.