The practice of street vending is common practice in major urban centers around thernworld. In different parts of the city of Addis Ababa, street vending can be observed howeverrnstudies that examine the practice demonstrate challenges and knowledge gap. By utilizing arnmixed method descriptive research design, this study envisioned to provide clarity into thernpractice and challenges of street vending in the Lideta and Arada Sub-cities. The main objectivernof the study is to identify and assess the practices and the challenges of the street vending inrnurban areas of Ethiopia, with focus on Addis Ababa.rnTo achieve the aforementioned objective of the study, three questions were developedrnand attempted to respond. The questions this study set out to answer were: What are the majorrncauses for people to join street vending business in Addis Ababa? How do street vendors carryrnout their business in Addis Ababa and what are opportunities and treats posed by the streetrnvending business? What is the contribution of Regulation number 53?rnTo answer the questions the study used both primary and secondary sources. The primaryrndata for the study was obtained through interviews, questionnaires and observation whereas thernsecondary data was obtained from books, journals and online sources. The data obtained wasrnanalyzed and interpreted to make sense of the phenomenon in light of the related literaturernreview.rnThe study discovered; that street vending is an important income source often times on arndaily subsistence basis for the vendors and that this is the major reason for joining the sector.rnMoreover, the small capital requirement of the business was another major factor to joiningrnstreet vending. The other major sources for joining the sector this study discovered are lack ofrnaccess to funding to join the formal business sector and lack of suitable and marketable space forrnvendors. The study also found out that street vending has an effect on the legal traders, traffic,rnthe legal and tax system. The study also found out that the street vendors lack awareness aboutrnarticle 53 and its benefits such as obtaining badges and subsequently a trading area assigned. Thernstudy also discovered that finding a trading area has positive relation with increase in income.