The competitiveness of Ethiopian textile and garment sub-sector has not been satisfactory.This has attributed by low level of productivity. This situation calls for a solution by considering the realistic and current conditions of the sub-sector at firm level through empirically analyzing their total factor productivity (TFP) and competitiveness, which the theme of this book basically focuses upon. The book is divided into five parts. Part one begins with overviewing textile & garment firms from world wide perspective while the second part is devoted to review theoretical and empirical literature on the area .The third part specifies methods to measure TFP and Competitiveness of the sub-sector. The fourth part focuses on the application of the Stochastic production frontier & Unit Cost ratio methods on the 25 firms of the sub-sector and interpreting the results. The last part gives concluding remarks and forwards policy recommendations. In general, the book is expected to give important information for policy makers, consumers and producers about the status of the sub-sector.It also Provides basic concepts of TFP and competitiveness for researchers working on various areas .