Fleet management is a component of transportation management that gives due concerns to thernwork of vehicles in the supply chain management pipeline. The general objective of this study is tornassess the fleet management practice, its implication for fleet performance, and associatedrnchallenges of the Ethiopian pharmaceutical supply agency. Institution based descriptive andrnexplanatory cross-sectional study designs were employed in this study. Sampling was donernpurposively both for the agencyâ€™s branch selection and study participant selection. Data collectionrnand analysis was accomplished with mixed quantitative & qualitative research approaches, andrndocument review. The relationship and predictability between the dependent and independentrnvariables were determined with Spearman correlation and ordinal logistic regression analysisrnmethods. Qualitative data were analyzed using thematic analysis technique. The descriptivernfindings reveal that vehicle routing & tracking (Mean=3.59) is the most practiced fleet activity.rnThe correlation and regression analysis show that maintenance & repair (Ï=0.559, p=.000), fuelrn(Ï=0.458, p=.000), and routing & tracking management (Ï=0.421, p=.000) have a significantrnassociation and predictive power for the fleet performance of the agency. The qualitative findingsrnshows that delay of vehicle maintenance & repair due to the absence of spares was the majorrnchallenge for the agency. Though there is significant and positive association between all fleetrnpractices and fleet performance, driver management do not significantly predict fleet performancernof the agency. The researcher recommends that EPSA higher officials need to build well-organizedrnworkshop and give more concern for fuel, tracking and maintenance activities.