Poverty is a critical problem of all countries in the world regardless of theirrnlevel of development. The whole purpose of development and DevelopmentrnStudies is to fight against poverty and reducing both urban and ruralrnpoverty in the world to the possible minimum level through differentrninterventions. Microfinance is considered as one of the major interventionsrnin poverty alleviation all over the world. Therefore, it is vital to evaluate thernrole micro finance programs play in urban poverty alleviation.rnThe prevailing operation of the conventional financial institutions inrnEthiopia is inefficient in providing financial services to the poor. Thernchallenge that is facing today is to reduce poverty. Microfinance is beingrnpracticed in the country as a tool to deliver financial services for reducingrnpoverty. In order to investigate the fundamental premise, this studyrnexamined empirical evidence in Addis credit and saving institution to knowrnits contribution to poverty reduction.rnTherefore, the objective of this study is to find out whether delivery ofrnfinancial services of the MFI to urban poor in the contribution of towardsrnpoverty alleviation. Primary data were collected through questionnairernadministered to clients of AdCSI using systematic random samplingrntechnique. Secondary data were gathered from different literatures andrnMFIs 'reports. The research is both quantitative and qualitative in nature.rnDescriptive analysis was applied in the study. The contribution ofrnmicro finance is analyzed based mainly on income which in turn hasrneffects on nutritional status, education fee, medical facilities, employmentrngeneration, and empowerment among others. The finding indicates thatrnAdCSI scheme has made positive contribution to the clients in relation withrnobserved variables. Though the result also implies that AdCSI givesrnpriority to women clients on the provision of financial services; loanrndisbursement of men is higher than loan disbursement of women. Besides,rnsignificant number of borrowers can not afford expenses on education,rnclothing they have no income generating mechanism before joining in therninstitution among others. Therefore, strengthening the existing operationrnwith other support means of income generating mechanism would bernappropriate to address the problem of urban poor