Back ground:-Participating in proficiency testing ( PT) is crucialrnfor clinical laboratories tornevaluate their gaps based on the feedback from PT providers, and taking corrective action shouldrnused to improve the quality of service provisions.rnObjective:- The objectives of this study was to evaluate the utilization and rnchallenges ofrnRBC, 56.6% for SGOT, 44.4% for SGPT,75% for Syphilis, 75.4% for Total bilirubine, 79.2%rnfor Urea, 39.9% for WBC was identified in this study.rnConclusion:- PT is not utilized effectively among 12 governmental hospital laboratories inrnAddis Ababa through 6 cycles. There are challenges for effective utilization of PT (the majorrnidentified challenges was knowledge gap, poor staff commitment ,equipment down and reagentrnout of stock) so stakeholders and collaborators need to resolve or minimize the challenges forrneffective utilization of the coming PT.rnKey words:- Panel Test, EQA, Utilization, Participation rate, Trend of analytical scorernrnproficiency test panel in government hospitals at Addis Ababa.rnMethod:- Retrospective study was conducted among 12 government hospitals laboratories inrnAddis Ababa, who had been participated in proficiency tasting schemes for 20 clinical laboratoryrntest parameters in 6 cycles from 2012 to 2013 G.C. Data on institutional performance and testrnresults plus problems of each parameter participation were extracted fromrnproficiency testrnfeedback reports stored at the data base of Ethiopian Public Health Institute(EPHI). Focusedrngroup discussion (FGD) and in-depth interview were used to assess the major challenges ofrninstitution participating PT. Trend of analytical performance scores of institutions in six cyclesrnwas analyzed using SPSS version 20. Likewise, qualitative data obtained through the focusrngroup discussionrnand in-depth interviewrnwere classified in major thematic areas andrnsummarized accordingly.rnResult:- A total of 12 hospital participated, of these 5(41.7%) owned by federal ministry ofrnhealth and 4(33.3%) were under Addis Ababa Regional health Bureau plus 3(25.0%) werernuniformed service hospitals. A total of 12 laboratories participated in all six cycles of 20 testrnparameters panel tests. The overall acceptable analytical performance score was 2643 of 6984 PTrnchallenges (37.85%) and the overall participation rate throughout the 6 cycle was645 of 1440rn(44.7%). Of reviewed performance of 20 analyte in six cycle, the total failure rate participantrninstitution was 4341 of 6984 PT challenges(62.15%) Of which , 2880 of 6984(41.23%)of thernobserved EQA failures occurred in 4 of the 12 laboratories. EQA fail rates among the 12rnlaboratories were 63.8% for AFB,50% for ALP,48.6% for CD4, 68.1% for creatinine,75% forrnDirect bilirubine,88.9% for gram stain,68.1% for HBsAg,76.3% for HCV,44.5% for Hgb, 51.4%rnfor HIV, 55.6% for morphology identification,82.7% for parsitology,38.9% for PLT, 50.0% for