The sp cialized technical and vocational education and training in Ethiopiarnwas introduced in the 1940s.The expansion and diversification of the trainingrnareas is a continuous trend of the system in the country. However, graduates ofrnTVETs were not able to get employment and external inefficiency was endemic tornthe system.rnThe principal objective of this study was therefore, to identify the majorrncauses of external inefficiency of TVETs in South Gondar Zone of AmhararnRegional State. The degree of external inefficiency, causes of externalrninefficiency occupationally relevant training areas and adverse effects of externalrninefficiency were the major themes of the studyrnIn order to gather relevant information from the three available TVETrn(Addis Zemen, Debre Tabor and Nefasmewcha) administrators, teachers and thern2004 and 2005 graduates, descriptive survey method was employed. Allrnadministrators, all (33) teachers except who taught common courses, and 165rnTVET graduates were subject of the study.rnBased on the major themes (basic questions) of the study, collected datarnthrough three main groups of questionnaires were analyzed. Finally, summary ofrnmajor findings, concluding remarks and recommendations have been made basedrnon the major themes of the research. The research results revealed that externalrninefficiency of the three TVETs in South Gondar Zone of Amhara Regional staternwas critical. The major determinant factors for external inefficiency of TVETsrnwere out of TVETs factors such as the economic and market conditions of thernlocalities