Aflatoxins (AFs) are toxic and carcinogenic metabolites produced by a variety of fungi. Aflatoxin M1 (AFM1) is the major carcinogenic type frequently found in milk and dairy products, thus posing a significant impact on human health. The current study was undertaken to examine milk and some dairy products for contamination with AFM1 in local markets, Sharkia Governorate, Egypt, as well as the effect of manufacture. A total of 75 samples (15, each) of raw milk, pasteurized milk, yoghurt, processed cheese and Domiati cheese were randomly collected. AFM1 was detected in 27 (36%) out of the examined samples in which the level of AFM1 exceeded the limits (0 ng/L, kg) allowed by Egyptian regulation but only 6 (8%) samples exceeded the limits (50 ng/L, kg) allowed by European Commission regulation. Levels of AFM1 contamination in the examined milk and dairy products with mean values of 35.68 ± 10.90, 45.83 ± 7.80, 7.57 ± 1.92, 24.53 ± 3.91 and 42 ± 4.93 ng/L, kg in raw milk, pasteurized milk, yoghurt, processed cheese and Domiati cheese, respectively, were detected. The level of AFM1 decreased after yoghurt manufactur, while, cheese manufacture showed concentration of AFM1 in curd than those in cheese milk. During refrigeration storage of yoghurt, the mean AFM1 toxin decreased after one, two, three, seven days, respectively, then nearly similar level from seven days to fourteen days of storage. In conclusion, widespread presence of AFM1 in raw milk and some dairy products were considered to be possible hazards for public health especially children therefore, continuous monitoring of AFM1 level in commonly marketed raw milk and dairy products in Sharkia markets should be regularly done. Manufacture and storage had little effect on AFM1 content in milk and dairy products, therefore, new or modern technologies for detoxification of milk should be further studied.