Railway signaling system is one of the most important parts of the many which make up thernrailway system. It is the vital control system which demands the use of reliable and fault tolerantrnsystem as it directly related to the safe movement of passenger trains. Ensuring safety in railwayrnsignaling systems is considered as significant as a guarantee of the safe and efficient operation ofrnthe whole railway. In fact, one of the most important objectives of a safety analysis of thernsignaling system is to maintain a high degree of safety.rnTherefore, to avoid these problems and provide an optimized signaling, a signaling systemrndesign should incorporate additional safety analysis. One of the safety analysis methods fromrndesign stage is failure analysis which is used to study the whole dynamic system, point outrnpotential failure modes, failure propagation scheme and used to predict about the system.rnTo this end, this thesis presents the failure analysis of Addis Ababa-Light Rail Transit signalingrnsystem by employing model-based failure analysis methods and system fault tree, causes andrneffects, major failures are investigated.rnFailure propagation models for the subsystems of AA-LRT signaling system are modeled onrnMatlab-Simulink, where signaling equipments in a main station are represented. Functionalrninteractions between those equipments are also represented.rnHierarchically Performed Hazard Origin and Propagation Studies (HiP-HOPS) is used from thernmost common model-based safety analysis tools to define each signaling system equipment localrnfailure data and to analyze failure models which are done on Simulink.rnFault trees are generated as a result for selected hazards in simulations showing the possiblerncauses of failures.