The purpose of this study is to assess pharmaceutical warehousing performance and challengesrnin hospitals that are found under the Addis Ababa regional health bureau. For the study, arndescriptive method with a cross-sectional study design had employed. Besides, this study appliesrna quantitative research approach. Data were collected by using the Questionnaire. Due to thernsize of the studies' population is few and below 100, whichis 53, this research is a census study.rnA total number of 53 questionnaires were distributed, 51 were filled and returned, from thesernthree (3) were filled in completely, thus, 48 questionnaires were correctly filled & used to makernthe response rate 90.57%. Mean, frequency, and percentages have used to analyze the data, withrnthe support of SPSS software. Generally, the finding of the study showed that the levels ofrnPharmaceutical warehouse performance are found to be moderate in the case of Addis Ababarnregional heath bureau hospital pharmacy warehouses. Moreover, inconvenience of therndesign/layout of the pharmaceutical warehouse for performing warehousing activities;rninsufficient availability of space for loading & unloading of pharmaceuticals: absence of welldeveloped technology for warehouse inventory control, absence of procedure for disposal ofrnexpired and damaged items from inventory and Insufficient manpower to do thernloading/unloading of pharmaceuticals are found to be the major challenges of warehousing.rnFurthermore, low attention is given to the provisioning of training for employees. The hospitalsrnhigher management should plane to visit the warehouses on a certain period interval and gatherrninformation from employees, then work on challenges that are identified to improvernpharmaceutical warehousing performance.