The purpose of this study is to understand the level of stakeholder management practices in Ethiopianrnconstruction design and supervision works corporation, building and urban design and supervision worksrnsector and examine the challenges the organization faces in stakeholder engagement. The objective of thernstudy is to assess the key stakeholders of the sector, assess their respective roles, and assess the stakeholderrnmanagement practice in the sector and finally the challenges or critical barrier factors for effectivernstakeholder management practice. The study used both qualitative and quantitative approach and datarnwas gathered through structured questionnaires distributed to employees of the corporation and in depthrnkey personnel interview. Analysis of the data revealed that the key stakeholders of the industry are client,rnconsultant, contractor, government authorities and suppliers. Their respective roles ranged from fundingrnthe project, technical assistant to supplying the necessary equipment and material. The study revealed thatrnthe sector considered internal stakeholders as key stakeholders than external stakeholders. The level ofrnreadiness in the sector for stakeholder management practice was found to be level 2 or procedural andrnfinally the challenges to effective stakeholder management were project planning and development, projectrnset targets and Stakeholder management process.