The main purpose of the study was to assess instructional leadership effectiveness in governmentrnelementary schools of Arad Sub City in Addis Ababa. Recruitment and selection of principals,rnthe extent of teacher’s participation in school leadership, major factors that hinder principal’srneffectiveness and principals professional involvement in the three dimensions that are definingrnacademic goals, managing the instruction and curriculum and promoting a positive learningrnclimate were areas assessed in the study. Descriptive survey design was used to collect data fromrn5 purposively selected schools. 105 teachers, 5 principals, 10 deputy principals, 5 clusterrnsupervisors and 5 human resource managers were sample members of the study which werernselected by census and simple random sampling techniques. Open ended and closed endedrnquestionnaire, semi structured interview and focus group discussion (FGD) were used as datarncollecting tools. Data obtained from respondents was analyzed using percentage, mean andrnstandard deviation. Data obtained though interview and FGD were analyzed qualitativelyrnthrough narration. The finding revealed that government Elementary school principals in AddisrnAbaba city Administration of Arada sub city were not effective in the practice of directionrnsetting. This was confirmed with grand mean 2.8 Missions of schools and instructional goalsrnwere not effectively communicated with stakeholders. The emphasis given to support teacher’srninstructional practice through supervision and Post observation conferences focusing onrnteacher’s instructional strength and limitations was resulted with arithmetic mean 2.4 which wasrnpoor practice. The study further attempted to identify major areas where teachers displayed theirrnleadership roles and their desire to participate in different school affairs. Out of the total tenrnareas where teachers leadership roles were believed to be vital, only 2 (20%) of the areas werernpracticed by teachers at moderate level. Lastly it was identified that recruitment and selectionrnpractice of school principals was not merit based. Based on the findings, the followingrnrecommendations were forwarded. School principals and cluster supervisors should workrntogether to incorporate stakeholders views on what should be achieved, how to be achieved andrnwhen to be achieved for effective goal setting practice. Addis Ababa City AdministrationrnEducation Bureau and Arada Sub City Education Office in collaboration with nongovernmentalrnorganization need to build capacity of school principals by organizing seminars, workshops, andrnin-service trainings.