Introduction In countries like Ethiopia where the selling of staple food crops is the common way of earning cash income; the concept of agricultural commercialization is never restricted to cash crops. Among the staple food crops, teff is becoming a market-oriented crop in Ethiopia. This paper investigated the challenges, opportunities, and intensity of teff commercialization in the study area. Methods Data were collected from 155 randomly selected teff growers, four focus group discussion participants encompassing both women and men farmers, and twelve key informant interviewees from the local leader, development agents, and head of the Woreda agriculture office. Data were analyzed by descriptive statistics, Value of teff sale, Crop Output Market Participation Index (COMPI), double hurdle model, and qualitative data analysis. Results The average teff commercialization in terms of the value of teff sale by sample households was 6005 ETB (Ethiopian Birr). The double hurdle model result revealed that sex of the household head, application of agricultural inputs, and row sowing technology positively affected the commercialization decision of farmers in the teff output whilst the size of land allocated to teff, chemical fertilizer, row sowing technology, and frequency of contact with extension agents positively influenced the intensity of teff commercialization. Adjunct to this high input price, lack of input availability, and frost were identified as major hinders to teff production in the study area. Conclusions The finding of this study showed that there is a direct relationship between agricultural inputs utilization for teff and farmers’ decision to commercialize it and the level of its commercialization. Therefore, the timely provision of agricultural inputs and possible subsidization of these inputs will increase the productivity of teff since farmland expansion is unthinkable due to scarcity of land. Moreover, the District office of agriculture should collaboratively work with the nearby research centers to reduce the problem of frost by introducing a frost-resistant variety.