The challenges of pharmaceutical supply chain developing an objective of challenges leadingrnto stock out and what challenges are affecting the pharmaceutical supply chain activities forrnminimize the interruption of supplies that was important for health facility. Tracking challengesrnof the pharmaceutical supply chain is important. The aim of this study was to assess thernpharmaceutical supply chain system of health centers and hospitals in Addis Ababa. Thernresearch conducted using both quantitative and qualitative approach of research methods andrndescriptive types of research using structured questionnaire collected data from sampled AddisrnAbaba health centers and hospitals. There are different challenges of pharmaceutical supplyrnchain that lead for the stock outs. Integration of pharmaceuticals were no full supply fromrnsuppliers, forecasting disorganization for demand estimation, procurement poor coordinationrnand there was stock out at least 12 months were high. LMIS was uncoordinated, no enoughrnspace of store capacity and problem of transportation those factors contribute for the stock outrnof pharmaceuticals. In pharmaceutical supply chain activities have different challenges forrndecreasing the interruption of pharmaceuticals. Challenges related to pharmaceutical supplyrnintegration of the health facility and the suppliers and planning the goals with suppliers andrnmanaging the supplier relation and develop capacity of supply planning from the production orrnmanufacturer to the end user to facility. Forecasting process and acquiring of thernpharmaceutical from the supplier in the requested quantity were challenging for the healthrnfacility and some information of the supply pipe line was not monitored and does not known sornthe probability of stock out were high. Decrease wastage of pharmaceuticals and prevent stockrnout in health facility it was one area of challenging that stock outs are occurred and emergencyrnorders were placed decreasing those challenges increase the availability of pharmaceutical.rnMinimizing challenges of pharmaceutical activities of the supply chain improves the consistencernof pharmaceutical supplies and decreases interruption of services in the health facility