Tomato is an important cash crop in Central Rift Valley of Ethiopia and currently plant spacing practiced by growers quite different from research recommendation. Field experiment was carried out at Melkassa Agricultural Research Center, in the year 2011/12 and 2012/13 off seasons with the objectives of evaluating the effect of four inter-row spacings (70, 80, 90, and 100 cm) and three intra-row spacing (20, 30 and 40 cm) on yield and yield components of fresh market(Bishola) and processing (Cochoro) tomato cultivars. The treatments were arranged in 2x4x3 factorial in a split-split plot design in three replications. Data were collected on plant canopy width, above ground dry biomass as well total, marketable and unmarketable fruit yield and on quality parameters such as TSS, fruit length and diameter were analyzed. The results indicated that inter and inter-row spacing had a significant effect on plan canopy width, above ground dry biomass, total, marketable, unmarketable fruit yield, TSS, fruit length and diameter. The highest canopy width of Bishola (77.08 cm) was recorded at 40 cm x 100 cm whereas for Cochoro (71.30 cm) at 40 cm x 90 cm. Maximum fruit TSS (3.72) was recorded at 40 cm intra-row spacing and this was not significantly different from 30 cm (3.68). The highest total fruit yield of 100.45 and 92.55 ton/ha were recorded for closer inter and intra-row spacing of 70 and 20 cm, respectively. However, the highest marketable yield was obtained at 90 cm (51.48 ton/ha) inter-row spacing and at 30 cm (45.78 ton/ha) intra row spacing and this was not significantly different from 40 cm. The study suggest that 30 cm x 90 cm or 40 cm x 90 intra-inter row spacing combination was suitable for obtaining higher marketable yield and good quality fruit around Melkassa and similar conditions in Ethiopia.