Urban transport is very crucial for the movement of goods and people which make the backbone of therneconomy and sustainable development. However transport system creates some problems like accident,rncongestion, environmental pollution if not properly managed. Hence, the transport system of Addis Ababarncity has shown evidence of traffic problems like accident, congestion, environmental pollution etc. that arerncreated due to improper driving practice of operators, lack of sufficient infrastructure, lack of regulatoryrnframework etc. . Thus, the main aim of this study is to assess the traffic management practice of the city andrnthe challenges that hinder the efficient implementation of the practice considering the existing trafficrnproblem observed in the city. The study also seeks to identify the prospect measures that are planned to bernundertake in the future. Both primary and secondary data sources were used to collect data. While,rnquestionnaire and semi-structured interviews were used for collecting primary data, internal documentsrnwere reviewed for secondary data .Purposive sampling technique was used to select respondents from AddisrnAbaba Transport Bureau and random sampling technique was used to select operators of vehicles in thernselected area of the city road as respondent. Hence qualitative methods were employed to analyze the data.rnAccordingly, the study found the traffic management practice of the city is very weak and it is at rudimentaryrnstage. However, there are some initiations which are employed to control the existing traffic problem in therncity in terms of engineering, enlightenment and enforcement programs. Thus, those practices are notrnadequately employed with respect to the magnitude of the problem the city faces like accidents, congestions,rnparking etc. Therefore the study further seeks for the major problems that hinder the traffic managementrnpractices as it is required. Hence it is found that there are various internal and external factors that hamperrnthe undeveloped management practice of the city. These challenges are categorized as internal and external.rnThus, not having a defined organization structure, lack of sufficient and competent manpower, lack ofrnoperational and implementation resource, not supported by modern technology are the major internalrnfactors. Similarly the practice has some external factors like lack of integration among stakeholders, lack ofrnrecognition, weak enforcement capability, and lack of integrated transport planning which distract thernefficient practice. Thus based on the findings as a recommendation the requirement for the recognition ofrntraffic management with innovative and responsive policies with city wide power, responsibility and staffing;rnthe need for taking in to account the application of full range of traffic management measure, the need tornhave a framework (architecture) that describe all step needed to achieve effective traffic management are thernmajor recommendations forwarded by the study