The purpose of this study was to assess the status of practices and challenge of co-curricular activities in secondary schools. Descriptive survey method was employed to conduct the study and the sampling techniques were simple random sampling and availability sampling. In order to collect data, researcher used questionnaire, interviews and secondary sources. Questionnaire was distributed to 156 teachers and in addition to this, 8 school principals and vice principals 3 woreda supervisors and PTA members were interviewed. Finding of the study revealed that the number of clubs existed and effectively giving services for school community was less and cannot give chance to involve for large population of students. Absence of experience sharing program and shortage of provision of materials, equipment and supplies were seen in secondary schools. Adequate guidance and support, incentive and reward giving practices for better achievement of teachers and students were not achieved by school leaders. In addition, lack of trained teachers on area of co-curricular activities and lack of budget were the factors exhibited in secondary schools. So, the participation of students and the practices of co-curricular activities in secondary schools were low. Thus, to improve the situation, it is recommended the training program should be organized by the coordination of school leaders and woreda education office, strong monitoring, evaluation and feedback mechanism should be established, adequate budget needs to be allocated by government for school, experience sharing program within schools and across secondary schools in zone, region, and country should be designed and implemented by joint effort of school woreda education bureau.