The part that produces eggs and female hormones (estrogen and progesterone) is the ovary.The ovaries are a pair of small, oval-shaped organs found in the female reproductive system, located on each side of the uterus. Their two main functions are:Production of eggs (ova) - Every month, during the process called ovulation, an ovary releases a mature egg that can potentially be fertilized by a sperm.Secretion of female hormones - The ovaries produce estrogen and progesterone, which are responsible for regulating the menstrual cycle, supporting pregnancy, and developing female physical traits such as breasts and wider hips.