Road building is a significant sector in Ethiopia as well as Addis Ababa, as it is in many other countries and cities, because of its enormous contribution to the country's economic growth and social development in terms of job possibilities and macro-economic aspects. However, the road construction industry in Addis Ababa suffers from many challenges and complex issues the road construction projects have low performance in schedule, cost, and quality dimension. To eliminate these challenges of performance identifying the main challenges of performance is important/significant. This project study was aimed to find out the main challenges of road construction projects performance in Addis Ababa Road construction projects in the case of Addis Ababa City Road Authority. This research uses descriptive methods of research and the data use to be collected by using a study survey through questionnaire and interview. The questionnaire was distributed to contractors, clients, and consultants. Meanwhile, managers who have a direct relation with road construction projects in AACRA are interviewed. The questionnaire was in the Likert five-point scale form and it analyzes by using the relative importance index (RII) to give weight for the challenges to identify the main challenges of road construction projects in the Addis Ababa city road authority. Clients, consultants, and contractors provided quantitative data via questionnaires, which was then analyzed using the Relative Importance Index (RII). The outcome of the study analysis revealed ten significant challenges of performance. As a result, clients, consultants, and contractors agreed that the top-three most significant challenges were inflation, lack of utility service coordination, and poor financial management, which are the key challenges of road construction performance, respectively. And the study also discovered the key six effects of challenges on the performance of road construction projects. According to the study, the top three effects of challenges on performance are time overrun, cost overrun, and creating social and economic concerns, respectively. The top ten challenges are identified after analyzing the data from the perspective of stakeholders.