The purpose of the study was to assess the status of stakeholderâ€™s participation and the challenges of school leaders their duties in Secondary Schools of Gurage Zone. The study employed a descriptive survey design. It was carried out in seven selected secondary high schools of Gurage zone using simple random sampling technique. 254 male 28 female teachers,76 male 8 female totally 84teachers proportionally in size participated as sample using stratified random sampling. 7 principals, 4 vice principals 26 department heads were selected by purposive sampling. 5 ( 100%woreda education officers were selected using purposive sampling. Semi structured interview was also utilized to substantiate the data gained through the questionnaires. Both primary and secondary sources were used. The primary sources of this study were principals, Assistant principals, teachers, WEO, PTA members of the selected schools. Secondary sources were documents of in the study area. To gather the necessary data, three types of data collection instruments used. Namely questionnaire consisting of both closed and open ended item was analyzed. The qualitative data obtained through interview was analyzed. The results of the study reveal that school leaders involved in leading and managing the school without having prior qualification in school leadership and trainings. Furthermore, the study reveal that lack of qualified and well trained school leaders, lack of training and experience sharing with surrounding schools, shortage of budget and inadequate communication skill of leaders hinder leadership activities. The study concluded that lack of stakeholders participation are less effective in their leadership due to lack of experience and qualification in their professions. Finally, the recommendation is providing opportunities training for unqualified school leader ships to build their professional skills to alleviate /solve/ the factors that hindered proper implementation of school leadership challenges and stakeholders participation.