Thi s study assessed key governance chall enges in Addis Ababa city govelnment, andrnpresent recent empirical evidences. the paper begins defining and elaborating keyrngovernance components, such as participation, rule of law, transparency, responsivenessrnconsensus buildin g, effe cti veness and efficiency, accountability, fairness andrninclusiveness and strategic vision.rnthe study developed a random sample based on a multistage, stratified, area clusterrnapproach, which gave every eligible adult in each enumeration area to have an equal rnchance of being selected. In the 10 sub-ci ti es, in total 350 of respondents were caltied outrn3 18 of whi ch were responded- an overall response rate of 90.86%. design of thernquestionnaires used in the study has contained certain standard questions. ident icallyrnworded items are used for purposes of comparison and locating public opinions in cityrngovern anc e system.rnthe main govemance issues discussed in this study include citizen participation andrngovernance partnership, civil society engagement 111 governance process andrndevelopment programs, working arrangements between city government and the privaternsector, culture of accountability, communication practices and access to infomlation,rnextent 0 0 transparency in financial arrangements, decision making approaches,rninclusiveness and fairness in dealing with citizens, attractiveness of laws and programs tornassist community, management efficiency and effectiveness in adopting and resourcing arncustomer-centered strategy for budgeting and finall y, democratic consolidation and itsrnworking culture in city administration. the study then provides evidences which suggestrna sobering picture: on average, there appears to be weak progress in ten11S of goodrngovernance and participatory democracy in city government jurisdiction in recent times rnRecommendations in the study are suggested including ensuring effective participation,rnpromoting ' effective partnerships and participatory planning approach, strengtheningrnaccountability culture and a corruption free govel11 ance system, addressing politicalrnpolarization in governance system, and nurturing and choosing foresighted leaders