Sufficient and reliable supply of energy is needed to develop any country in the world. But there is arnproblem in conversion and usage of these energy sources that is they causes high energy wastage,rnhigh cost of energy to convert and use and high carbon emission to the environment. This is most ofrnthe time occur in developing countries like Ethiopia which has low knowledge on energyrnconservations and usage, this make to these developing counties to generate higher energy instead of rnusing the existing energy effectively [1]. Industries like textile, sugar and cement factories consume arnlarge amount of energy but do not use effectively which results in paying of extra money that affectsrnto the factory and to the country in general.rnIn this study we have used, software like Micro soft Visio and Microsoft excel to design diagramsrnand Motor Master Software which is used to select/choose the best and efficient motors based onrntheir efficiency, cost effectiveness and energy savings. We have also used measuring devices such asrnportable flue gas analyzer, energy meter, thermograph, temperature probe, different reading gaugesrnto get appropriate data of the equipmentâ€™s.rnTherefore, this thesis focuses on energy auditing and conservation in Quiha Maa-Garment andrnTextile Factory and its goal is to improve the energy efficiency of the industry by proposing energyrnefficiency increasing techniques. These techniques include replacing high energy consumingrnmaterials like changing of T12 lighting tubes by T8 lighting tubes, boiler air ratio control,rnimplementing boiler flue gas waste heat recovery system, thermo boiler air ratio control,rnimplementing thermo boiler waste heat recovery system, heat transport facility reinsulating, dyeingrnmachine waste water heat recovery system, dyeing machine adiabatic paint coating, air compressorrnintake temperature improvement, using of energy efficient electric motors, changing damagedrnmaterials and by best rewinding of motors. rnIt is found that by adopting the suggested energy conservation techniques, the total electrical energyrnsaving is 90.3Mwh/yr and the thermal energy saving is 129.304 kl/yr. Thus, the total energy savingrnconverted into the same unit (i.e., toe/yr) is 137.13toe/yr. Further, it is observed that carbon emissionrnreduction due to electrical energy saving is 11.151 tc/yr and the reduction on account of thermalrnenergy saving is 98.525tc/yr. Thus, the total carbon emission reduces to 109.676tc/yr. Furthermore,rnit is found that the saving in cost on account of electrical energy is 52,061.5 birr/yr (or $ 1735.4), duernto saving in thermal energy is 2,197,699.15birr/yr($73256.64) and total cost is 2249760birr/yrrnKey Words: Maa-Garment and Textile Factory, energy efficiency improvement techniques,rnMicrosoft Visio, portable flue gas analyzer, thermograph, Motor Master + international software.