This study was conducted in November, 2015 in selected Woredas of Amhara region with the aim of assessing the impact of veterinary cost recovery on efficiency of public private livestock services and to share the experience of the region with other regional states. Structured questionnaire and a field survey with focus group discussion were applied on a total of 475 randomly selected households. Animal health service in the Amhara region is clearly dominated by the public sector. Private-sector involvement was prominent only in the veterinary drug sales and treatment services. Seventy five percent of livestock owners responded that they received veterinary services from their residence within 1km radius. The results indicated that only 18% of respondents were satisfied by clinical examination provided by public sector. There was wide disparity in the effectiveness of delivery of animal health services between public and private sectors in the study Woredas. Majority of farmers were not been satisfied with the services provided by private sector. The supply of drugs is increasing especially after implementation of veterinary cost recovery scheme but with the limited ranges. Most respondents had positive views regarding availability of veterinary drugs (62.2%) and vaccines (78.1%). Many livestock owners believed that illegal veterinary drug sales have decreased after implementation of veterinary cost recovery scheme (VCRS). The fact that payment for veterinary services has already been adopted by livestock owners in the study Woredas could be considered as a good opportunity to start a full cost recovery scheme as well as pave the way for initiating veterinary privatization in some pilot Woredas.