Seed is among the most key input for improving crop production and productivity. This review paper was aimed to recognize opportunities, constraints and potentials in Ethiopia for production of vegetable seed production. Major opportunities and potentials existing in the country for production of vegetable seeds were reviewed and described. Ethiopia has a comparative advantage in production of horticultural commodities on account it's favorable climate, proximity to European and Middle Eastern markets and cheap labor, low cost, disciplined and trainable Labor force and the size of its domestic market and the numerous river basins affording great potential for irrigation. Increasing the quality of seeds can increase the yield potential of the crop by significant folds. Hence, access to and uses of seeds are critical factors for the ability of smallholder farmers to increase agricultural production and productivity, ensuring food security and improving livelihoods. The Ethiopia seed system has undergone a tremendous change during the past three decades. But, still the sector is unable to guarantee farmers' access to seed of improved varieties, in the right quantity, of the right quality, and in a timely manner, mainly because of the highly centralized seed distribution system and virtual absence of seed marketing conducted by the seed producing enterprises and companies. Currently, government and private seed enterprises are involving and combining their efforts to produce and supply seed to the growers. Beside these, the sector suffers from weak linkage and integration among the stakeholders; there is a substantial gap exists between the production and availability of commercial seed and farmers' demand. It describes the stakeholders and structure of the seed system and examines its performance in contributing to seed availability and access. It also briefly indicates the major constraints and opportunities in the sector regarding with the production and dissemination of improved seed and suggests the possible solution to tackle these constraints.