Addis Ababa City Charter Creates two levels of City Courts, exercising municipal jurisdiction-rnFirst Instance and Appellate Courts. There is no Supreme Court in the municipal court system,rnalthough a cassation bench is included within the Appellate Court. Cassation review ofrnAppellate court decision can be brought before the Federal Supreme Court. This court has alsornthe power to decide on matters of jurisdictional conflicts between the City and Federal courts.rnThe court system in Addis Ababa City reflects a similar division as between federal and staterncourts, except being a two level one.rnThe Ethiopian justice system, according to the Comprehensive Justice System Reform Programrnbaseline study (2005), has three core problems. First, it is neither accessible nor responsive tornthe needs of the poor. Secondly, it has serious problems to tackle corruption, abuse of power,rnand political interference in the administration of justice. And thirdly, inadequate funding of thernjustice institutions aggravates most deficiencies of the administration of justice. As it is partrnand parcel of the countryâ€™s legal system the judicial system in the Addis Ababa City governmentrnis not absolutely free of the above mentioned insufficiencies.rnTo carry out this research descriptive method is utilized. The research mainly relied on primaryrnand secondary data. Secondary data sources include books and journals and articles. Internetrnsources were also extensively used. Out of the eleven courts, including the appellate court, fourrnsample courts, which is more than thirty six percent of the total population .i.e. Bole, Yeka,rnArada, and the Appellate court were selected as sample area to collect data. Random samplingrnis used to collect primary data, particularly using questionnaires and interviews.rnThe findings revealed that: the JAC in the City Courts is powerless in the selection of judges;rnthe process of selection of judges is not transparent; the A.A. City executive interference in thernfunctions of the courts is high; investigation of ethical misconduct is not made by an impartialrnbody and there is no way to appeal against the decisions of the JAC; judges representation inrnthe JAC is insignificant; the courts are not empowered to independently administer theirrnbudget; the court structures in the City contradicts with the constitutional framework; the Cityrncourts are inefficient, not accessible, particularly, for the poor. Case management in the courts is too poor. The Court supporting staffs are unqualified, both in education and experience, andrnthe least paid as well.rnTherefore, the judicial system needs to be reformed in the sense of having a predictable judicialrnenvironment with the perspective of reliable, independent, and efficient judicial system, which isrnan essential factor for democratization, good governance, and economic development inrnEthiopia