The purpose of this study is to assess Project Implementation Practices and challenges of Youth Employment Project - The Case of Save the Children Ethiopia. This study was conducted in SCI Ethiopia. The census method is employed in aiming of collecting data from project employees. The target population of this study was 35 employees. Among the target population 31 questionnaires returned. Structured questionnaires were employed to collect demographic and other relevant data from project managers and team members.rnAfter data collection process the data has been analyzed using methods (frequency and percentage) and descriptive analysis (mean and standard deviation). Survey data were subjected to descriptive statistics and analyzed using STATA software.rnThe study revealed that the project processes of initiation, planning, and execution, were adopted the practical use of the general agreed project implementation process that recognized by the project management institute while implementing the project except some activities. And most of the items included in the questionnaire under each phase were followed by the organization during the project implementation process.rnFinally, the study found that lack of user inputs, lack of executive management support, lack of resources, unrealistic expectations of the project output, and challenges from government rules and regulations were found to be major challenging factors.rnGenerally, the organization had prepared well organized and detailed plan to comply all project requirements with the exception of the proper procurement and risk and change management plans. To the success of the project it is advisable to give considerable emphasis for the initiation and planning phase. Considering government rules and regulation is significant asset. Moreover, Participation, commitment and ownership of project users is expected for a better project success starting from initiation and planning phase. Similarly, accessibility of adequate resource should be identified.