This paper presents women and informal sector retrospective and socio-economic responses with particular emphasis to parallel trading in Dessie town Ethiopia. This study was carried out in Dessie town Ethiopia. Primary Data were gathered from parallel traders through questionnaire and observation, and secondary data sources were accessed from Dessie town trade and transport office and CSA (Central Statistical Agency). The paper has purely mixed explanatory sequential approach which is based on the collection and analysis of quantitative data to be followed and supported by a qualitative data. The finding of the study has shown that parallel trading is the first among alternatives for women’s divorced or widowed and dependent hitherto to parallel trading. Women in parallel trading were engaged in retails of food items easily accessed in the local markets, in which more than two-third of households are dependent on the gains as well as become involved in the retails activity. Though, parallel trading economic responses were the bases for women’s livelihood, its performance would not let women’s and their dependent family members /household to have better house and access to education. In the study the socioeconomic response of parallel trading were constrained by government regulations that exclude and discourage the trading, lack of access to finance, lack of premises and lack of smooth supply of inputs. So therefore, it is important for both local governments and organizations working on women affairs to reconsider their actions and create environment and the necessary support to encourage women and promote parallel trading grow and integrate to formal economic sectors.