Currently, Addis Ababa light rail transit is using the traditional fixed block signaling system. Fixedrnblock-signaling divides the track into small blocks, which determines how far apart the trains willrnbe kept for safety and how frequently the stations will be serviced. This signaling system of AddisrnAbaba light rail transit make the headway of the system unnecessarily long which handcuff thernoperator in terms of the number of trains they can push through the system. On the other hand, inrnmoving block signaling system the train location is continuously updated through the real-timerncommunication between the train and the wayside. There are no fixed block boundaries whichrnallows trains to run closer to each other while ensuring safety. As a result, the operators have twornchoices to improve their headway and capacity: build more subway lines or squeeze more out ofrntheir existing infrastructure by adapting new technologies like Communication based train control. rnrnIn this thesis, a communication based train control system have been used to develop a new rntimetable for Addis Ababa light rail transit. The key parameters required to develop arncommunication based train control systems timetable such as, dwell time, speed, braking distance,rnemergency braking distance, time for lock switches, and synchronization of trains are discussed inrndetail and their values are calculated. Depending on those results a new headway for the newrntimetable is obtained. The validity of newly modeled timetable is tested using Arena simulationrnsoftware. Finally, the calculated values and simulating results shows that the current headway ofrnAddis Ababa light rail transit can be improved to 8.84 minutes (minimized by 58.93%) from 15rnminutes only by changing the signaling system to a moving block based on Communication basedrntrain control system.