The general objective of the study was to find out challenges and prospects of Ethiopian cementrnmarket. The study has employed exploratory research design since the subject understudy isrnnovel in cement industry. Qualitative research method has been used to collect data. Thernsampling strategy for the study was non-probability (purposive)sampling based on criteria.rnBased on their market share and cement production capacity, six cement firms have beenrnselected from the industry.Totally, 6 cement firmsâ€™ marketing mangers and 9 whole sellersrnwereselected to conduct the study. The selected cement firms in the industry covers 69% of therntotal cement production capacity and 85% annual cement market share. In-depth interview hasrnbeen done to collect data from the marketing managers and whole sellers of the cement firmsâ€™rnunderstudy. The data has analyzed by using content analysis method. Main findings of the studyrnincludes; imbalance between production capacity and cement demand due to enormous cementrnprojection in the country, drop in cement demand due to slow construction boom, marketing mixrnstrategies 4ps and market intermediaries. The prospects of Ethiopian cement marketrnincludes;huge number of population and countries fast growth rate, low cement per capitarnconsumption, increased government spending on infrastructure, and availability of rural andrnurban housing projects. The study has recommended that, the cement market should be regulatedrnin some extent to safeguard the small cement firms, government should plan and execute cementrndemand simulation mechanisms, and alternative energy sources should be practiced and utilizedrnin cement firms to reduce cement production cost.