Although Ethiopia has the largest livestock population, productivity and production have remained low. The dairy technologies encompass the use of crossbred animals, artificial insemination, improved feed technology and improved management. Regardless of the potential to meet the growing demand for milk, there is an immediate need to adopt and follow better technologies of dairy farming. For that, it needs to know the base-line information of current features of technology adoption by the small households and the related constraints to adopt these technologies. This study was carried out in Ambo town in West Shoa zone, Oromia Regional State, Ethiopia. It was selected purposively because of the reason that there was gap between supply and demand of the product in the town. Three kebeles of Ambo town were selected purposively. Among the selected kebeles, household dairy producers were stratified into adopters and non-adopters of dairy technologies. The total sample size for the study was 152 households. Based on their probability proportional to size principle, 74 adopters and 78non-adopters were taken for the study through simple random sampling method. The primary data were collected from sample respondents through a structured questionnaire. In addition, key informant interviews and focus group discussion were used. Binary logit model was used to analyze the factors influencing dairy technology among sample farmers. Results of the Binary logit model indicated education level, farming experience of the households, dairy farm income, and frequency of contact with extension workers and knowledge were found to have positive and significant influence and market distance found to have negative and significant influence on adoption of dairy technology in agreement to the initial hypothesis. Clear messages on dairy farming technology and training of both woreda extension workers and households should be emphasized so as to improve their understanding and skills.