The paper has made a study on the practices and challenges of logistics in Ethiopian mediumrnand large leather footwear manufacturing firms with regard to customer service, inventoryrnmanagement, supply, transportation and warehousing activities. The main objective of the studyrnwas to describe the current logistics practices. The study raised six research questions that arernanswered as a result of the study. For the study descriptive type of research was used, andrnquantitative and qualitative data was collected related with the extent of firmsâ€™ logistics practicesrnusing structured questionnaires and different secondary documents. The target population coversrnall the seventeen medium and large scale leather footwear manufacturing firms in Ethiopia.rnFinally, the collected data was analyzed using descriptive statistics, and secondary documentrnanalysis is done for confirming the findings. The result indicates almost all the modern logisticsrninfrastructures like ERP, EDI and Radio frequency are not applied by these firms for ease ofrnlogistics operation, and commonly logistics is practiced at the lesser extent. Even though thesernfirms practiced the logistics activities in their day to day operations, most of the firms have nornlogistics department in their organizational structure. Foreign currency shortages, higher taxes,rnlack of integrated system and long lead time in ports are found to be the critical challenges ofrnlogistics for footwear manufacturing firms in Ethiopia.rnKey words: Logistics Practices, Logistics Challenges, Footwear Manufacturing Firms