The leather industry is composed of different production stages and it is characterized byrnusing a large quantity of water and various types of chemicals .The wastes generated arerncategorized as a high polluting nature and usually are of solid and liquid types.rnCurrently, except few tanneries in Ethiopia, the majorities are not aware of thernenvironmental impacts associated with their activity. Even they are not willing to haverntreatment plant because of its cost for erection and running the plant. However, Elico-rnGloving and Hide unit (EGHU) constructed the primary treatment plant at a cost of 8rnmillion Birr .The plant is still functional and its running cost is around 550,000 Birr perrnannum. In addition to this the company is practicing on ISO-14001 .In this paper a studyrnis performed at EGHU by implementing Life Cycle Assessment methodologies.rnInventory analysis on the major inputs and out puts of the production processes in thernskin tannery and impacts of the related activities are carried out. Based on the adaptedrnimpact assessment method the major problems of EGHU are identified. The possiblernimprovement options for the existing problems are suggested. The research result showsrnthat the implementation of the suggested improvement options will have significantrnbenefit for the factory and for the environment. Since practicing on LCA in Ethiopia is atrnthe infant stage, this thesis may serve as source of information to tanneries and otherrnindustries on the LCA methodology and on the existing environmental problems of thernleather industry