The study assesses the practice and challenges of project planning in the CommercialrnBank of Ethiopia. The study was conducted based on the data gathered from commercialrnbank of Ethiopia project management office. Since the number of the staffs of projectrnmanagement office is manageable, census is used. A mixed research approach wasrnemployed to answer the research questions that emerged through the review of existingrnliterature. The data obtained through questionnaire has been analyzed using descriptivernstatistics. To acquire the intended information the researcher used structurally designedrnquestionnaire. The result of the study indicated that most of the projects planningrnprocesses are practiced poorly in commercial bank of Ethiopia. The finding also revealsrnthe major challenges that the Commercial Bank of Ethiopia faces in the project planningrnprocess. These are: Lack of adequate and effective project time management, lack ofrnintegration between projects, lack of experienced project managers, lack of qualified andrnexperienced project teams, lack of project management training, inefficient andrninsufficient communication between project managers and team member and absence ofrndocumenting lessons learned and best practices. The study recommended the bank morerneffort should be made at the planning stage of the project, more advanced projectrnplanning tools and techniques should be applied while preparing the project plan, thernProject management offices need to have project planning department to conduct thernproject planning activities and to provide training about project planning practice tornproject managers and project team members on regular basis.