Health care organizations are now facing different challenges that brought them to a decision tornobtain efficiency improvement, quality and cost reduction. The growth in health sectors access andrndelivery in Ethiopia has been improved markedly in the last decade. Despite the improvementrnmade in expanding access to health sectors, the disease burden is still high and the servicernutilization rate remains low. According to the study made by WHO patient satisfaction rate is 50%rnand average length of stay is 6-7 days and patients are forced to spend a prolonged waiting time inrndifferent service stations to get served. Uneven distribution of facilities, shortage of workforce andrncomplicated path flows are among the causes of this prolonged waiting time in public hospitals. rnrnThis research aims in experimenting the possibilities of process improvement opportunities inrnYEKATIT 12 hospital by utilizing lean six sigma methodology. In doing so qualitative andrnquantitative data collection tools and analysis tools have been used. A literature has been reviewedrnand hospital documents are referred as a secondary source of data. Based on the literatures Yekatitrn12 hospital is selected as a case hospital and based on the preliminary data assessment laboratoryrnservice station is selected as a case area. Primary source data has been collected from patients,rnlaboratory technologists and management personnel’s.rnrnData has been analyzed by using the DMAIC framework of LSS. The DMAIC clearly shows thernexisting system and the bottlenecks are clearly defined. In addition to DMAIC arena simulationrnsoftware have been used for analysis. Then a new process is developed by value stream mappingrnand it is simulated by arena simulation software. The results after improvement show that Cyclerntime of processes are reduced which directly reduces the prolonged waiting time within thernlaboratory department. Therefore, it is safe to conclude that Lean Six Sigma can indeed be appliedrnfor process improvement in Hospitals.