The purpose of this study was to identify the level of psychological preparedness among rnYouths preparing to leave care from Ketchene and Kolfe child care and rehabilitation center, rnin Addis Ababa. Data were collected from 128 care leavers (with age range 17- 25 years old) rnwho were preparing to leave care through the psychological preparedness scale, self-esteem, rnoptimism scales, FGD, and KII. Data from the quantitative survey were analyzed using rnfrequency, percentages, mean, standard deviation, Independent t-test, Pearson Correlation, rnand Multiple Linear Regression. The qualitative data were analyzed using inductive thematic rnanalysis. The results of the study revealed that using the mean value of the psychological rnpreparedness scale, the majority of the care leavers are moderately psychologically rnprepared. On the other hand, The Multiple Linear Regression result showed that self-esteem rnand optimism had a positive effect on the psychological preparedness of care leavers. The rnfinding from the Pearson moment correlation revealed a statistically significant positive rncorrelation between Self-esteem, optimism, and psychological preparedness. However, the rnindependent samples t-test revealed that the psychological preparedness of care leavers does rnnot differ in gender. From the analysis of the qualitative data, rehabilitation programs, and rnpsychosocial service, social and institutional experience were identified as the major rnelements to promote a better psychological preparedness. The researcher, therefore, rnconcluded that self-esteem and optimism have a significant impact on the psychological rnpreparedness of care leavers