<p>The practice of dairying has become an increasingly important livelihood farming activity for smallholder households in Amanuel and Dembecha districts, Amhara region, Ethiopia. However, the value chain for milk marketing in the region suffers due to inadequate information regarding structure conduct and performance (S-C-P) model. Therefore, this study aimed to evaluate the (S-C-P) model with regard to milk marketing system in the study districts. Primary data were collected from randomly selected 244 milk producers and 50 milk traders from both study districts using semi-structured set of questions whereas, secondary data were collected using literature review techniques from published and unpublished data sources. Moreover, FGD, key informant interview and direct observation were used to strengthen the collected data from primary respondents. Finally, the S-C-P paradigm revealed that there was imperfect market competition between milk traders and also marketing performance measurement, the total gross marketing margins and share of producers vary from channel to channel. The study concludes that both district level livestock development offices should promote and strengthen the cooperative marketing channel (Channel I) for the efficient functioning of milk marketing value chain and to ensure a fair return to milk-producing smallholder households.</p>