This thesis sought to assess and analyze challenges and prospects of riverbank urbanrnagriculture in one cooperative vegetable producer along Little Akaki River of AddisrnAbaba city. The study was basically an assessment that used both qualitative andrnquantitative approaches. Sample household from a total of 241 urban farmers randomlyrnselected and nine key interview persons were selected by using purposive sampling fromrnrelevant government organizations. A structured questionnaire, interview guidingrnquestions, photography, document analysis, and satellite images were methods and toolsrnof data collection. The finding of the study indicates that urban agriculture activity in thernstudy area has an impact on the natural environment especially;on soil erosion andrnwater pollution as well as pose health risk due to contamination of vegetables with toxicrnsubstances.. Informal occupation of reserved area for urban agriculture by squatters asrnwell as urban agriculture activities in protected area for other green development andrnuses are the two major challenges observed in the study area. The contribution of urbanrnagriculture in the city includes employment creation for more than 3807 household headsrnand benefits more than 14,544 family members. It also serves as poverty reductionrnstrategy for the disadvantage group of the society such as women, elder and youths whorndo not have job at the moment. The benefits of urban agriculture in the selectedrncooperative shows that it is the survival livelihood for 241 household heads and 2,500rnfamily members. Vegetable growing along river both in the city and the cooperative morernchallengeable as domestic and industrial waste management are very poor and thernspatial location of industries and garage close to the river. Recognizing and providingrntenure security of the existing urban farmers is the primary solution for the challenges inrnthe study area. However, in order to enforce the city structure plan, commercial forestsrnand fruit trees should substitute the existing vegetable farms. Moreover, capacitatingrnurban agriculture units in the city can solve technical and other problems which urbanrnfarmers face in the study area