The purpose of this study was to investigate the language preference during market transaction in linguistically diverse Dire Dawa markets, Eastern Ethiopia. The participants of the study were 216 (146 from Taiwan and 70 from Ashewa) market halls. The sample of this study was taken through systematic sampling and accidental sampling technique. To collect data, questionnaire and observation check lists were used. From the total of 238 transactions being observed in both market halls, 108(45%) of the transactions were used Amharic as medium of transactions. The findings of this study also revealed that there was significant relationship between language preferences of sellers and buyers (r=.685; P<0.05). There is a strong correlation coefficient of language preference of sellers and buyers employed during market transaction (r=.720 & r=.453; P<0.05) was significant at P<0.05 level of significance. Keywords: Language preference; Market transaction; Linguistic diversity; Dire Dawa markets; Eastern Ethiopia
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