We study the effects of smallholder market participation on intra-household time allocation in Ethiopia. We followed 156 households for 2 consecutive days and recorded the time allocated to dairying, domestic chores, schooling, wage work and leisure. Propensity score matching was used to determine the average effect of household market participation on intra-household time allocation. Results show that market participant households spend significantly more time on dairying and non-dairying activities than non-participant households. There are also substantial gender differences in intra-household time allocation. Although men take up only a small part of the dairy activities, milk income shifts from women to men in participant households. Given that in participant households women spent substantially more time on domestic and dairying activities, it is important that time-saving technologies are introduced to reduce their workload in the household. Women’s participation in the formal milk market should also be strengthened to ensure their access to the milk income.