The aim of this thesis is to investigate the use of femtocells deployment for indoor users underrnlong term evolution (LTE).LTE is currently under deployment in Addis Ababa to support thernhigh traffic demand of devices. Addis Ababa as a capital city of Ethiopia has got different bigrnbuildings, companies, hotels, hospitals, condo, and residential houses etc. Most of the calls andrndata services like exploring internet will takes place indoors. Although LTE is the latestrntechnology, due to different signal attenuation factors like the number of walls, the number ofrnfloors, furniture‟s and others, the need of subscribers are not fulfilled yet. For this reasonsrnfemtocells are taken as solution, with the aim of enhancing the capacity for indoor users. Theyrnare new technological advance, which are used to significantly boost cellular networkrnperformance especially in indoors.rnFirstly, this thesis is intended to give good understanding of LTE technology and femtocells. Inrnthe second stage several femtocells deployment constraints are studied along with the proposedrnflow chart. These constraints are spectrum allocation, handover, interference, mobility and givernsome ideas for how to overcome them. Jamo condo was taken as a sample for performancernanalysis using Multi Wall Multi Floor (MWMF) indoor propagation model. Finally this thesisrnwork could be investigated by comparing the performance of LTE with and without femtocellsrndeployment using MATLAB.rnThe performances of femtocells are discussed based on specific key performance indicatorsrn(KPI). Accordingly path losses, received power, signal to interference plus noise ratio, data raternand power control are performance measurements used in this thesis. The results of thernexperiment show that femtocells are well suited for enhancing network capacity for indoor users.rnHowever, unable to be done based on real deployment due to absence of femtocells in allrnbuildings of Addis Ababa. This thesis work recommends further study of the femtocellsrntechnology for increasing the data rate in certain dead zone areas other than indoors.rnKey words: LTE; femtocells; deployment considerations