The present research study was conducted in North-Eastern part of Addis Ababa, Bole SubrnCity Bole Ayat area. The main objective of the present research work was to characterize thernbuilding foundation material and to assess its bearing capacity and settlement potential in thernstudy area. To meet out the objectives of the present study, systematic methodology wasrnfollowed. Literature review was undertaken to have general background on the subjectrnmatter. Besides previous works were reviewed, secondary data was collected from variousrnsources, filed observation and laboratory tests were also conducted. Representative samplesrnwere also collected and analyzed. Secondary data on borehole logs, test reports and otherrndocuments on site investigations were procured from several companies and organizations.rnAlso, test pit logging, sampling and testing were also undertaken to generate primary data.rnThe secondary data was processed and all relevant parameter data/ information necessary forrnbearing capacity and settlement analysis was obtained. For building foundationrncharacterization and analysis the study area was divided into 9 sites; Site 1 to Site 9, so thatrnthe data can be well managed and systematic analysis can be made. The bearing capacity wasrnestimated through various analytical and semi empirical techniques, based on laboratory testrnresults on soil properties and through in-situ properties by standard penetration test. Thernoverall evaluation of bearing capacity of foundation soils at shallow depths in the study arearnreveals that ultimate bearing capacity in general increase with depth and with increasingrnfooting dimensions. Through the limited analysis it is also found that the estimated totalrnsettlement is not within the limits of allowable settlement. Further, bearing capacity zonationrnmaps are also forwarded through the present study. Finally, based on the results of thernpresent study recommendations are also forwarded. Key words: Building foundation, Bearing capacity, Settlement potential, StandardrnPenetration test