The aim of this work is to investigate the feasibility of oil production from Avocado in Ethiopia. Being the soil nature, and the weather condition and of course the seasonality is ideal for Avocado cultivation, there is a wide production of Avocado in different area in Ethiopia. The gaps value addition program is important to removing or minimizing postharvest loss, we had engaged in studying the feasibility of the production of oil from avocado. Both market and economic feasibility has studied as it is indicated in their respective sub-sections. The market analysis reveals the availability of market gap. Because, avocado oil is most widely consumed fruit in Ethiopia, the country does not export this product to the international market due to limited production capacity but it is importing the palm oil and other type of oils in order to satisfy the demand. Economic feasibility investigation result also shows the profitability of the business idea, since, the net present value is positive which mean acceptable and viable for implementation.