Water hyacinth is one of the worldâ€™s most invasive aquatic plants causing significant ecologicalrnand socio-economic impacts. Most of the problems are associated with its rapid growth rate, itsrnability to compete with other aquatic plants, and difficulties to manage its spread. Waterrnhyacinth infestation on Lake Tana has been manifested on a large scale, and has created seriousrnproblems mainly on the environment and socio-economic activities. The study focused on thernchallenges of managing the impacts of water hyacinth on Lake Tana, Central Gondar Zone. Arntotal of 226 households were drawn as representative sample using simple random sampling.rnThe data gathering instruments used were questionnaire, key informant interview and focusedrngroup discussions. Data were described using frequency counts, percentages, Chi-square andrnIndependent t-test. The results shown that water hyacinth expanded more and adversely affectedrnthe local environment. The major water hyacinth controlling practices were dependent on handrnremoval by local community. The result also revealed that low concern of the government, lackrnof appropriate technology to apply, and declining participation of local communities on manualrnremoval of the weed as the major challenges of managing water hyacinth in the area. Besides,rnthere is no significant perception difference between farmers and non-farmers on the expansionrnof water hyacinth (p=.960), and there is no statistically significant relationship between thernparticipantsâ€™ occupation and perception on the challenges of managing water hyacinthrn(p=0.323). Recommendations, government has to support and strengthen efforts undertakenrncurrently, appropriate policy and strategies need to be formulated and strong institutional setrnup must be established, application of appropriate technology and integrated control methodsrnhave to be employed to effectively manage the problem.