It has been about ten years since the government of Ethiopia made a new educational andrntraining policy. The making of the policy has been followed by the development andrnimplementation of different programs in order to carry forward the innovations enshrined in it.rnOne of the highly emphasized aspects of this policy is the need to implement an active learningrneducation most of the time which is expressed as student-centered, both in content and approachrnwith the objective of producing a problem solving citizen. Related with this, the more elaboraternaspiration of the policy is the trend towards shifting learning instructions from teacher-centeredrnapproach to a student centered approach. Though a variety of understanding exist on what ‘arnstudent-centered approach’ means, the active learning approach with its qualifications as arnstudent-centered approach and its unquestioned relevance in the development of problem solvingrncitizen, it is expected that this approach is given precedence in the implementation of the policy.rnStudent-centered method of teaching learning as occupied an important place in modern world.rnThis is because it has many advantages in developing learners’ knowledge and skills. But itsrnadvantage is realized only when it is effectively and properly applied. Based on this, the mainrnpurpose of this study was to assess the status of implementation of active learning (studentcenteredrnmethod) in PE program of AAU.rnTeachers, students, class room and practical sessions, and documents were the source of data forrnthis study. Questionnaire was the main data gathering instrument which was supported byrnobservation and document analysis.rnxirnThe result of the study indicate that most of the instructors in the PE department got differentrntraining in teaching, but there is low understanding, methods of delivery and helpfulness torneffective teaching learning process. Also the study revealed that the students have a favorablernperception towards the method. In addition the university doesn’t supply necessary materials andrnequipments that are necessary to effective implement. According to the result of the study,rnteachers’ lack of appropriate training particularly related with active learning method, shortagernof instructional materials and facilities has affected the application of the method. Studentcenteredrnstrategies like problem solving, discovery, inquiry, project, field trip and role play werernnot applied by the teachers according to different challenges. Finally the study revealed that thernteachers of Physical Education department in Addis Ababa University were not properlyrnapplying the active learning (student-centered) method. They mostly used traditional teachercenteredrnmethod