Contemporary organizations pay more and more attention to the development of their employees.Thus training and development are becoming optimal answers to complex organizational challenges, and the management of human resources is taking central role in modern management. Therefore, the main objective of the study is to identify HRD practice and challenges of College of Health Sciences, Addis Ababa University. Both primary and secondary data were collected from sample of respondents and published, as well as unpublished documents were used in the research. A survey questionnaire with five point Likert scales is the main tool for gathering primary data about human resource development practices and challenges of the College. One hundred and fifty-three participants were involved in filling the questionnaires. An interview was also made with Human Resource Manager and Experts in the College. To analyze the quantitative data, descriptive statistical techniques using SPSS Version 20, and the narrative analysis was employed to analyze the qualitative data. The findings of the study indicated that there were no proper practices of human resource development in the College. Additionally, there was also gap in understanding the importance and underlying premises of the Policy on Human Resource Development. Moreover, the practices were challenges by certain inter-related to the act of creating managerial and leadership capacity utilization of human resource assessment technology to plan HRD, failure to pay attention to professional development and developing favourable working environment in the College. The practice of human resource development is not believed that it has contributed to the employeesâ€™ effectiveness and efficient in their assigned jobs. Accordingly, it was recommended that there should be participatory approach to develop and customize Human Resource Development Programme which is budget-based and tailored to meet the specific needs and objectives of the employees, their respective working unit or division they are working in, and to help the College to cope up with the multi-dimensional challenges of the practice and competitions with other higher educational institutions in globalized knowledge-based economy.