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Foot and mouth disease (FMD) is contagious, acute viral disease of all cloven-hoofed animals. The disease is endemic in Ethiopia and causes multiple outbreak every year all over the country. While it is important to understand to the transmission dynamics of FMD outbreaks for appropriate control intervention, no such study has been done in Ethiopia. Thus, the aims of this study were to estimate the basic reproduction number (R0) of FMD and simulate FMD transmission dynamics of FMD in Amhara region of Ethiopia. Basic reproduction number (R0) was estimated from age stratified sero-prevalence data through maximum likelihood estimation. A stochastic SIR (susceptible-infectious-recovered) compartmental FMD model was formulated and parameterized using literature and age stratified sero-prevalence field data. The R0 of FMD in the region was estimated to be 1.27 (95%CI: 1.20-1.34). The simulation of the SIR model showed only 24% (95% CI: 16-32%) of the infection introduced in the region caused major outbreaks. Out of the major outbreaks 25% of them tend to persist in the region. Major outbreaks cause 38.9% (95% CI: 38.8-39.1%) morbidity and 0.0019% (95% CI: 0.0018-0.0020%) mortality in cattle and the outbreaks stayed for an average of 690 days (95%CI: 655-727). Validation of the model prediction with farmer's field experience indicated a fairly similar result especially for the predicted morbidity caused by outbreaks. This study revealed low transmission of FMD within the Amhara region cattle population indicating not very high vaccination coverage is needed, if control through vaccination is envisaged at regional level. However, owing to several simplified assumptions made during the modeling, this conclusion should be taken cautiously.