This study was required to assess the existing tef market outlets and examine factors affecting market outlet choices among smallholder tef producers in western Ethiopia. For this study qualitative and quantitative data were collected from tef producers. Purposive and multi-stage sampling technique was used to determine sample households. The descriptive statistics and multivariate probit model were employed to analyze the collected data. The result shows that there are five alternative main market outlets available for the tef producers that are wholesalers, collectors, cooperatives, consumers, and retailers. These market outlets were affected by household’s demographic such as age, gender, education level, and household size), socio-economics (land allocated for tef, a variety used, livestock holding, and off/non-farm activities), institutional (credit, extension, and market information), and market (volume of tef produced, own transport facility, and nearest market) factors. Based on the findings strengthening farmers’ skills and knowledge through training, advising, and supervision; capacitate farmers by the additional work atmosphere and empowering women farmers by improved variety, working capital, and other recommendations are need attention by respective sectors.