The purpose of this study was to assess the status of internal efficiency of educationalrnsystem of secondary schools in Hadiya Zone. A descriptive survey method was employedrnand both primary and secondary sources were used. As primary sources data wererncollected from 190 sample teachers, 6 principals, 24 PTSA and 6 supervisors of samplernschools. In addition, document reviewed including records that show the enrolment,rnrepetition and promotion of students at different years at each sample schools were alsornused as secondary sources. With regard to the sample and method of sampling, available,rnand simple random sampling methods were used. In order to collect data, four datarncollection instruments were used. Those were; questioner, interview, document Analysisrnand observation checklists. To analyze data, mixed approaches were used. Accordingly, tornidentify the personal characteristics of respondents and the trend of internal efficiency ofrnschools in the zone, frequency, average mean and percentage were used, besides tornexamine the major causes of internal efficiency the degree to which stakeholders aware ofrnits impacts. Based on the research finding, most of the school principals and supervisorsrnhad gap of awareness about drop-out rate and repetition. Zonal trends of secondaryrneducation in relation to dropout rate of school have indicated that oscillating from years tornyears. Dropout rate trend of females in the sampled woredas were higher than malerncounterpart as of the zonal trend. The researcher concluded that the trend of dropout raternat zone, woreda and sampled secondary schools were highly characterized by ups andrndowns that could be major problem to Zonal. To solve these problems, the researcherrnrecommended that School principals, school teachers, KEBs and political authority shouldrnhave made continues discussion, creating awareness with pupil parents and making themrnresponsible to minimize studentsâ€™ school dropout and repetition.