A cross-sectional study was conducted in three dairy production systems of North Wollo Zone, Amhara National Regional state to assess Production system, husbandry practice, product handling and major constraints of dairy production practices. A total of 254 randomly selected small holder households, 25 from urban, 89 from periurban and 140 respondents were individually interviewed. Data were collected through questionnaire, observation, focus group discussion and key informant interview. Mixed crop-livestock production system was the typical feature of the farming system in both rural and periurban dairy. Statistical Package for Social Sciences (SPSS Version 20) was used to analyze the data. Most of the respondents, 97.2% in urban and 84.3% in periurban areas kept dairy cattle for the purposes of milk sale. Respondents in study areas were keeping cattle for the purpose of herd replacement and /asset accumulation (index=0.44), income generation/sale (index=0.42), milk & milk products consumption (index=0.14) in their order of importance. From the total respondents 62.2% and 11.4% used natural mating and Artificial Insemination respectively. Crop residues, hay grazing, improved forage, agro industrial byproducts and non-conventional feedstuffs were identified as the major feed resources in the study areas. From the total respondents 68.1%, 28.3 % and 3.5 % had separate, simple enclosure and together with family housing type for their dairy cattle respectively. The overall average daily milk yield of local and crossbreds were 1.43±.540 and 6.88±.934 liter/day respectively. Blackleg, parasite (internal& external), mastitis, Pasthorolosis, LSD and FMD in their order of importance were the most prevalent cattle diseases. Cows were hand milked in all the of the study areas. The majority of respondents 100%, 67.4% and 75.4% in urban, periurban and rural study areas respectively were used locally called Woira (Olea Africana) for smoking purpose of milking and processing utensils. Purpose for smoking of milking & handling utensils was believed to improve the flavor, taste and quality of milk and milk products, facilitate fermentation and extends the shelf life of dairy products. Fresh milk, butter, buttermilk and fermented milk were among the common milk products produced and consumed by households& family members in the study area. Raw milk and butter were the most marketable dairy products. Dairy production in the study areas can be improved by solving constraints such as feed supply, veterinary care, introduction of cross breeds specially in rural areas, improved forage production, AI services, lack of land ,Inadequate water supply, manure disposal and developing efficient marketing systems.