The objectives of this study were to examine the impact of employee capacityrndevelopment on US Embassy across its successfulness and more specifically employeeâ€™srncapacity and capability development in the US Embassy. Descriptive survey design isrnbelieved to be appropriate for this study as it consists of mainly how and why questionsrnof the study, behavioral real events which are not possible to control and contemporaryrnand complex social phenomenon whose boundary is not clear. The respondents werernselected using Mixed method design was employed for the study and data wererncollected using qualitative and quantitative types of data collection methods. Withrnrespect to the quantitative data, questionnaire was administered to employees workingrnin different sections of the US Embassy in Addis Ababa. On the other hand, thernqualitative data were mainly gathered from various documents includingrnorganizational reports, employee capacity development manuals of the Embassy andrnrelevant proclamation. The study revealed that training and development is one of thernmost important factors in organizations success of the Embassy. Interestingly though,rnthe study indicated that promotion and employee retention are adversely andrnsignificantly correlated with organizations success. So organization should carefullyrndesign employeeâ€™s promotion strategy. The study further showed that promotion is notrnthe priority of employees; they prefer to be offered training and developmentrnopportunities as well as empowerment practices. Recommendations are made based onrnthe overall findings for possible action that will help further improvement based on thernresearcherâ€™s view.