The aim of this study is to assess how the rapid urbanization of Addis Ababa affects the culturernof Oromo in the Ethiopian federation with particular reference to Addis Ababa and itsrnsurrounding. It specifically examines the contribution of federalism for the recognition andrndevelopment of Oromo culture in and around Addis Ababa. The Thesis not only investigates thernrole of Oromia National Regional State (ONRS) in retaining Oromo culture but also identifiesrnthe challenges of promoting the Oromo Culture in and around Addis Ababa. In order to achievernthese objectives, the study mainly relied on qualitative research approach to analyze the datarnobtained through key informant interview, while those obtained through questionnaire werernanalyzed through simple statistics. Different primary data collection instruments, including keyrninformant interview and questionnaire were used to obtain primary data sources. It has alsornutilized different secondary sources including Books, journal Articles and published and non-rnpublished sources. The ONRS has tried to revive the Oromo culture in the city through openingrnAfan Oromo schools, revitalizing Gada system and conducting studies if an efforts made by thernONRS to preserve and to promote Oromo culture in the city are not adequate. The study foundrnout that, at present, there are several undermining factors of Oromo culture includingrnpoliticization of Oromo culture including identity, language, religion and social organization. The Addis Ababa city administration and the federal government are not concerning and givingrncredit as much as for the efforts of ONRS. The rapid pace of urbanization of Addis Ababa hasrnbeen in contradiction with the Oromo culture (including identity, language, andrnreligion/Waaqeffannaa in the city as well as with therninterest of the surrounding Oromorninhabitants who also want to use, manifest and maintain its culture stuffs, under the currentrnfederal system. In contrast to the federal state set up that give equal recognition to diversifiedrncultures and tradition, the centralized political practice, not cooperation of Addis Ababa cityrnadministration and federal government are among the challenges to recognize Oromo culture inrnthe Addis Ababa/Finfinnee city. It is, therefore, an argument of this thesis that a multiculturalrncity of Addis Ababa/Finfinnee can be created when the culture of diversified groups includingrnOromo culture are recognized, freely manifested and treated equally in the city without favoringrna certain group culture.