This research work finds challenge and constraint of an Enterprise Resource Planning (ERP)rnsystem implementation with particular reference to Ethio telecom. An Enterprise ResourcernPlanning system is a corporate wide information system which is used to integrate the businessrnprocesses and resources of a company. When the business environment of a company increasesrnand becomes complex, it is difficult to continue with the traditional decentralized informationrnsystems for timely decision making and other activities. In today‟s competitive businessrnenvironment, ERP systems are found to be essential for companies to get competitive andrnstrategic advantages. Therefore, the major objective of this study is to assess the implementationrnchallenge of Enterprise resources planning in ethio telecom and to recommend possible solutionsrnfor the gap created during the implementation. As result, the researcher has tested thernimplementation effectiveness by selecting major challenge and other related concepts. Thisrnresearch has a exploratory nature which elaborates the existing phenomenon as it exists. The datarnwas collected using questionnaires from ERP user. The collected data was analyzed using mainlyrnby computer such as SPSS (Statistical Package for the Social Sciences) version 23rnFurthermore, the units/strata have been selected since these work units are the major owner ofrnthe modules in the system, accordingly the total of 38 employees select randomly among ERPrnuser as a sample by using stratified random sampling technique and questionnaires wererndistributed accordingly Consequently, results shows that the deploy ERP system is not properlyrnimplemented and practiced on the basis of the selected effectiveness variables; it is observed thatrnthe ERP system is not effective across the divisions the system is implemented. In addition,rnproblems which hinder the practice of the system were identified. As a result, lack of toprnmanagement support, the rate of training, documentation and knowledge transfer, compatibilityrnissues with ERP module were found major challenges in ERP implementation in Ethio-telecom.rnHowever, the priori criteria “stepwise implementation†was not considered as putting thernchallenge and constraint in the implementation of ERP in Ethio-telecom.rnHence, the researcher has recommended that the company should re-consider its system withrnregard to the support of top management in assisting successful implementation of ERP in Ethio-rntelecom. Moreover, user interface of the system should easily be understandable, there should bernmechanism so that users can work on the system without any challenge . Finally, the companyrnshould give emphasis for the reporting formats so that any decision maker or externalrnstakeholder can the reporting formats should be easily understandable