Delay, cost overrun, dissatisfaction of beneficiaries are some of the problems witnessed in thern40/60 saving and housing development project. The purpose of the study was to determine therninfluence of stakeholdersâ€™ involvement in the five project management phaseson the performancernof 40/60 saving houses development project in Addis Ababa. The research used quantitativernresearch design approach.The target populations of the study were 157 contractors, 10rnconsultants and one client. A sample size of 100 contractors,10 consultants and one client werernused using stratified and random sampling techniques. Descriptive and inferential techniques ofrnanalysis were applied.It wasfound that the mean stakeholdersâ€™ involvement level in planningrnphase was statistically significantly differentfrom the remaining four phases while the means ofrnstakeholderâ€™ involvement level in the remaining four phases of the project management processrnwere not statisticallysignificantly different. Moreover, the involvement level of the threernstakeholders (contractors, consultants and client) was compared and there was a significantrndifference in the mean involvement level between client and the other stakeholders in the projectrnplanning phase of the project management. However, no significant difference was foundrnbetween contractorsâ€™ and consultantsâ€™ level of involvement. To determine the influence of thernstakeholdersâ€™ involvement on the performance of the 40/60 housing project, a regression analysisrnwas run.But the result of the analysis could not help one to arrive to the conclusion that anyrnstakeholdersâ€™ involvement in the five project management phases influences/does not influencernthe success of 40/60 saving houses development project due to two critical reasons: (1): thernstakeholders were not involved in all the five project management phases. (2): thernperformance/success of all sites was found to be poor. The findings in this study will be helpfulrnfor researchers doing similar studies.