The purpose of the study was to assess leadership practices and challenges in secondary schoolrnof Addis Ababa. To accomplish this purpose cross sectional descriptive survey design wasrnemployed. The study was carried out in six randomly selected government secondary schools ofrnAddis Ababa. From these schools, 71 teachers and 12 department heads were selected throughrnrandom sampling technique whereas 6 principals and 12 Sub city supervisors were selected byrnpurposive sampling technique and included as a subject of the study. The data were collectedrnand analysed using percentages, means and weighted means used by computing the data onrnSPSS version 20.The results of the study revealed that school principal’s leadership practicesrnwere found to be in good position in practices like inspiring the school vision, preparingrnappropriate school plan in participating teachers, and concerned stakeholders in order tornimprove students’ academic achievement. But school principals have limitations in practices likernover burdened by different routine administrative activities and lack of training. Furthermore,rnthe participation and interest of the community in the school affairs was low. In addition, unwiserninterference of higher officials, lack of power to decide issues by themselves and high turnover ofrnteachers were major challenges that secondary school leadership faced in Addis Ababa. Thernfindings of this s tudy indicated that school leaders hip in secondary school of Addis Ababa have a morernautocratic leadership style. On the basis of these findings, the study forwarded somernrecommendations to minimize school principals’ challenges through creating awareness raisingrnconferences for all stakeholders, select and assign school principals based on academic meritrnand to extend the interest of community to participate in school affairs