The main objective of this research was to examine the effect of foreign purchasing onrnoperational performance of Habesha breweries S.C. with respect to foreign purchasingrndimensions of lead time of foreign purchasing, foreign exchange of foreign purchasing, andrnoptimal inventory of foreign purchasing. as a research approach, quantitative researchrnapproaches were used in this study. As a research design the study employed causal researchrnalso called explanatory research. Stratified sampling on a random sampling base was used tornselect the appropriate samples of the study. In this study questionnaires were utilized as thernprimary data gathering tool. The data were analyzed utilizing descriptive statistics, regressionrnanalysis, and correlation, and then presented in tables. The finding of the study implies that allrnof the independent variables were found to have a positive and significant correlation with therndependent variable which is operational performance. The multiple linear regression analysisrnrevealed that, all independent variables (lead time of foreign purchasing, foreign exchange ofrnforeign purchasing, and optimal inventory of foreign purchasing) have a statistically significantrnrelationship to predict operational performance. Under the model summary of ANOVA testrnresult, the value of R and R2 obtained was statistically significant. The study concludes that, allrnindependent variables of foreign purchasing has a positive and significant effect on dependentrnvariable operational performance. Accordingly, this study recommends, since the results showrnthat there is a positive correlation between the independent variable (lead time of foreignrnpurchasing, foreign exchange of foreign purchasing and optimal inventory of foreignrnpurchasing) and the dependent variable operational performance, the manufacturing firm shouldrntake in to account the variables considered.rnKey Words: