Resources are mobilized to meet development objectives of the country from different sources.rnDifferent donors fund government projects to support development interventions in Ethiopia. Inrnorder to be successful in the project implementation project management tools has to be in place.rnMonitoring and Evaluation is one among the tools which is very crucial in successfulrnperformances of projects. Role of Monitoring and Evolution in donor funded governmentrnprojects is no not well investigated. Hence, this study aimed at the analysis of the role ofrnmonitoring and evaluation on donor funded government projects. M & E human resources, M &rnE budget, M & E planning, M & E stakeholder engagement, and M & E capacity were somernvariables analyzed in the study. Descriptive research design was used. Non probabilityrn(purposive) sampling technique was used to select intervention area of the projects. All 55 keyrnstaffs were included in the study from purposively selected area. Data was collected throughrnstructured questionnaires. Descriptive statistics was used to analyze the role of monitoring andrnevaluation (M & E human resource, M & E budget, M & E planning, M & E stakeholderrnengagement, and M & E capacity) on donor funded government projects using SPSS package.rnThe study examined M & E human resource, M & E budget, M & E planning, stakeholderrnengagement M & E, and capacity of M & E had roles on donor funded government projects. Thernstudy recommends there has to be adequate M & E planning documents and the plan documentsrnhas to share among staffs and stakeholders, staffs and stakeholders should be involved inrndesigning and planning M & E activities, M & E planning activities should be completed beforernthe implementation of projects commenced, time and efforts given to M & E should be adequate,rnassign sufficient number of dedicated staffs and technical expertise or officers with M & Erncompetencies, skills and knowledgeâ€™s who conduct M & E activities of projects, realistic costrnestimation, and adequate budget allocation should carefully be done to conduct monitoring andrnevaluation during planning of projects, stakeholders should be involved in monitoring andrnevaluation activities of projects at each stages of project cycle for successful performance ofrnprojects, capacity on monitoring and evaluation systems, tools, and techniques training shouldrnbe conducted through regular need assessment, careful planning, and delivered in time tornenhance projects activities implementations.