This research is concerned with the assessment on the implementation ofworeda decentralization inrnGambella Peoples National Regional State with particular emphasis to Abobo and Lare woredas. Itrnallempted to explore the objectives, legal and institutionalframeworks and implementation stat liS ofrnthe recently embarked DLDP and fiscal decentralization in the Gambella region. Secondly, the studyrnprovided a modest preliminmy investigation of some pel/ormance indicators of the program in termsrnof power and authority, local governance processes, inter-governmental relations, .financial andrnadministrative capacities, planning and budgeting processes, community participation and basicrnservice delivelY trends with particular reference to the two woredas. Finally, the study tried to illustraternsome of the major inherent and encountered problems and the possible pro;pects of the program.rnTo meet the above o~ject ives, the research employed more of qualitative case study approach.rnBoth primary and secondmy data sources were used in gathering pertinent in/ormation. The techniquernof collecting primmy data includes in-depth interviews at regional, woreda and kebele levels, foc usrngroup discussions with the community and personal observation. Secondmy sources are published andrnunpublished materials such as books, different reports and manuals that cover federal to the woreda.rnDescriptive method of analysis is used to analyze the primmy and secondary data.rnThe study found olltthat decentralization in general and woreda decentralization in particular had notrnbeen implemented adequately due to several reasons. It is challenged by many problems such asrninadequate devolution of pawer, limited decisions-making authority and autonomy tran.~ferred to localrngovernments, absence of polilical will and commilment to devolve power in real sense, lack of legalrnand institutional ji'amework, poor inter-governmental relations and weak coordination with differentrnstakeholders, upward accountability and absence of tramparency in the operation of localrngovernments, shortage of resources (skilled human power and materia/), limited administrative,rninstitutional and technical local capacities, weak budgeting and expenditure administration, poorrnrevenue generating capacity and heavy financial dependency on fede ral and regional governments,rnand weak public sector service deliveries. Regarding participation, there is low level of communityrnparticipation in different sectors at the stage of problem identification, prioritization of needs,rnplanning and budgeting processes and decision making activities at regional and local levels.rnHence, to make decentralization meaningful and bene.fits of woreda decentralization to be realized,rnrecommendations are made on power and authority, political commitments, legal and institutionalrnji'ameworks, capacity issues, inter-governmental relations, accountability, transparency, financial andrnhuman resources and community participation.rnKey Words: Woreda Decentralizatiol1, Devolution, Local Govemance, Local Capacity, Plallllillgrnand Budgetillg, COllllllunity Participation amI Service Delivery