Urban community which community? enjoys food security when all people, at all times, havernaccess to nutritious, safe, personally acceptable and culturally appropriate foods, produced inrnways that are environmentally sound and socially just. One of the means for food security isrnurban agriculture. This research focuses on urban agriculture with a particular to Challengesrnand Prospects of Vertical Farming for Sustainable Urban Development: The Case of NifasilkLafto Sub-City of selected areas of Addis Ababa. The general objective of the study is to explorernthe importance, challenge and prospects of vertical farming for sustainable urban agriculturerndevelopment for food security. Data was gathered from both primary and secondary datarngathered through qualitative and quantitative approaches. Representative sample householdrnfrom a total of 414 urban farmers in the sub city 90 representative farmers were randomlyrnselected. For the qualitative data nine key informant interviews were also conducted using arnpurposive sampling technique from the relevant government organizations. A semi-structuredrnquestionnaire, key informant interview ??? observation type of observation using photography,rndocument analysis, and satellite images were the methods employed for data collection. Therncollected data was analyzed using a descriptive statistics for quantitative and qualitative data forrnnarrative analysis for the quantitative and qualitative data respectively. The finding of the studyrnindicated that urban agriculture activity has effect on the natural environment especially on soilrnerosion and water pollution as well as poses potential health risk due to contamination ofrnvegetables with toxic substances. Informal settlers occupied reserved area for urban agriculturernpurpose by squatters. As well as urban agriculture activities in the protected area for greenrndevelopment and uses are the two major challenges identified in the study area. The studyrndiscusses the role of urban agriculture in connection with nutrition and food security, incomerngeneration and job opportunity, environmental improvement and sustainable urbanrndevelopment. Thus vertical farming as a new technological approach in urban agriculturernactivity should be promoted as it can solve technically and technologically the urban communityrnproblems.