Communication is the base to be there in any project organizations in which the exchange of information is processed from one person or entity to the other entity or person by using either formal or informal ways of communications that may be verbal or non-verbal means of communications .the meskel square project like any organizations is dependent of communications .that means it is frequently used and could be the day today activity of the project workers .in interactions among project contractors ,subcontractor,clientsproject managers and as well as other colleague. Both formal and informal ways of communications are the basically the focuses point of the project .in the project the is a clarity problem concerning role clarity. because role clarity is being an issue in many projects among different stakeholders. the study tried to investigate the role and functions of effective communication on project performance using the case of meskel square project as a case.rnParticularly the project work analyses the communication system available in the meskel square project and measured the project current performance due to communication and addition the research tried to analyses the relationship between communication factors and project performance .it also tried to identify the communication channels applied by project workers and officials that is the most useful in the project .finally barriers of the communications were clearly discussed how it affects the performance of meskel square project performance .primary data was used to analyses the effects of communication in project performance by using purposive sampling technique for the selection of 24 sample ,mean,correlaton ,standard deviation and regression analysis technique was applied what I understood from this paper ,face to face communication is mostly used by project workers next telephone channel is very importantly used and finally written ,email grapevine are used respectively with the most valuable method of communication is face to face in this workers highly perform well .distractions ,selective listening time pressure communication overload ,information distortions and rationazation were highly communications barriers lastly project performance indicators were discovered to correlate with difference measures of effective project communications .project performance can be researched further if there is any problem need to be discussed in the communication system .particularly the distortion of communication caused by omission and extremely exaggerations should be focused both by contractors and stack holder