The purpose of this study was to analyze the practices and challenges of leadership and show itsrncontribution to school improvement in Bole sub city private schools. Descriptive survey designrnwas used.. The primary data sources for the study were principals, teachers, students, parentsrnand supervisors of the study area. As a Secondary sources different documents, reports and otherrnrelevant materials were used. All the teachers (104) and 24 student representatives were selectedrnby census because of their small number. And 6 secondary school principals were selected byrnpurposive sampling, additionally 3 school supervisors and 8 members of PTA were selected byrnavailability sampling techniques. Multiple data collection methods were used: questionnairesrnstructured with closed and open ended, semi-structured interviews and focus group discussionrnwere employed to allow the researcher to get a more reliable and valid information. Thernquantitative data were analyzed using frequencies, mean and standard deviation; t-test was usedrnto test the significant of the two groups of respondents. The data gathered through openâ€“endedrnquestions; interviews; and focus group discussion were analyzed qualitatively through narrationrnfor the purpose of triangulation and obtain additional information on the issue. This researchrnhas shown that private school leaders in Bole Sub city were practicing leadership to arnsatisfactory level. The study also found inappropriate interference of school owners, teachersâ€™rnperformance and self motivation and student disciplinary cases were the challenges forrnpracticing leadership in high schools and bring school improvement. The study revealed thatrnschool leaders need more work to bring effective change and enhance school improvement. Thernresearch also shown to increase the effectiveness of the practicing leadership leaders shouldrnwork hard in developing a strong learning culture. Future researches should focus on howrnleaders can successfully meet the educational needs of diverse student population and increasernschool effectiveness. Educational Professional owners should be encouraged.