This study focuses on assessing the project stakeholder management practices of Addis Ababa Waterrnand Sewerage Authority (AAWSA). The research emphasizes on assessing how the projectrnstakeholders were being managed from the client side by assessing the practice of stakeholderrnmanagement in water and sanitation infrastructure development projects, and evaluating thernchallenges encountered in managing project stakeholders. The study investigate the practices ofrnproject stakeholder identification, project stakeholder management planning, and the practice ofrnengagement and communication with project stakeholders, and the associated challenges in projectrnstakeholders management. The descriptive study is used to determine the existing conditions andrnpractices in the case under study. Both quantitative and qualitative data were collected throughrnquestionnaire and semi-structured interview. The quantitative data from the survey questionnairernwere sorted and analyzed with the help of SPSS software, and the qualitative data was analyzed byrnrelating the results with literatures. The finding showed limitation in clearly identifying andrnanalyzing stakeholders’ interest and socio-cultural issues in sufficient detail at the project initiationrnphase, and in systematically prioritizing stakeholders based on important factors. The otherrndrawback identified were inadequate stakeholders’ involvement in project stakeholder planningrnprocess and absence of standardized communication system among stakeholders. The study resultrnrevealed that the main challenges encountered in project stakeholder management were conflictingrnrequirements of stakeholders, late identification of stakeholders’ interest, procedural issues, andrncommunication gaps, respectively. Moreover, other challenges encountered involve inadequaternallocation of financial resources and technical tools, inadequate project management capacityrnbuilding trainings, reluctance due to compensation issues, right of way issues, difficulties in dealingrnwith change of interest with time by stakeholders, integration and commitment issues, and lack ofrntimely decisions. The study has also provided further recommendations for the improvement ofrnproject stakeholder management practices on the basis of the finding of the study results.rnKey words: