The purpose of the study is to determine the challenges and prospects ofrncommunity radio in Ethiopia, taking Harar Community Radio (HCR) as a casernstudy. This radio station is selected because it has already stopped broadcastingrna few months ago. For the effectiveness of the research, efforts have beenrnmade to study the overall operational activities of Harar Community Radio andrnthe attitudes of its audience toward the managing, financing and productionrnprocesses. The researcher acquired the necessary data and information byrnemploying both quantitative and qualitative methods, including documentrninspection. Taking sample survey as the main means of acquiring data, focusrngroup discussion and in-depth interviews have been used to complement thernstudy. In addition, different books and documents were revised to give depth tornthe research outcome. The researcher has also examined the theories ofrnparticipatory communication and Jankowskiâ€™s community media researchrnagenda to specify the research objectives and questions. The outcome of thernstudy has pointed out that Harar Community Radio lacked many qualities of arncommunity radio station. As the findings clearly identify, it is not possible torntake HCR as a well organized community radio station. On the other hand,rnhowever, the radio station still has the support and trust of its audience. Thernstudy has, thus, investigated the challenges and prospects of community radiornbroadcasting in Ethiopia.