The aim of this study is to determine the level of contamination of aflatoxin M₁ (AFM₁) in raw and imported powdered milk in Khartoum state, Sudan. Thirty-five samples of fresh cow milk were collected from different farms, based on the source of concentrated feed introduced to the dairy cows (locally vs. commercially produced) and the size of the farm (≤50 vs. >50 cows/farm). Also 12 samples of powdered milk were obtained from repacking companies in Khartoum state. The samples were analysed by a fluorometer, using the Vicam method. AFM₁ was detected in all raw and powdered milk samples. Almost 50% of the contaminated powdered milk samples and all the raw milk samples exceeded the European Union limit of 0.05 µg/kg whereas 33% of the contaminated powdered milk samples and 77% of the raw milk samples exceeded the limit of Codex regulations (0.5 µg/kg). The results revealed that the concentration of AFM₁ is affected significantly (P < 0.05) by the source of concentrated feed (locally produced or purchased) but not by the farm size. It was concluded that the levels of AFM₁ in the milk samples indicated that the feeds offered to the cows were contaminated with aflatoxin B₁ to such a level that it might cause a serious health problem to the public. Therefore, there is a need to limit the exposure to aflatoxin by imposing regulatory limits, as well as further studies on large scale bases are needed to investigate the amount of AFM₁ in milk and dairy products.