The objective of this study was to describe the psychosocial challenges of people with leprosy inrnAddis Tesfa Hiwot. In conducting the research qualitative method was employed. The study arearnwas selected purposively because it was known for long time as colony of people with leprosy.rnTen people with leprosy were selected purposively based on the criteria and also five informantsrnwere used. Face-to-face semi structured interviews were used to investigate the psychological,rnsocial challenges of people with leprosy and coping mechanisms. The findings show that, almostrnall respondents didnâ€™t have awareness about the cause and transmission of leprosy. The studyrnwas also found that, a great number of people with leprosy struggle with psychological andrnsocial problems. They felt unhappy, stress, hopelessness, lowered social relationships and alsornfaced social stigma especially outside their colony even many of them didnâ€™t go out from theirrnhome. It was also found that, their children also faced huge psychological and social challengesrnonly because of their parentsâ€™ status. The study found that people with leprosy in Addis TesfarnHiwot faced huge psychosocial challenges. The researcher suggests that it is necessary to givernawareness to the public as well as to people with leprosy in order to reduce the psycho socialrnchallenges. Besides, there were many people with leprosy in Addis Tesfa Hiwot who needrnsupport. So, the government and nongovernmental organizations should be done a lot inrnsupporting them.