The main purpose of this study was to assess the challenges and current prospect of physicalrneducation in secondary schools of Arbaminch. The sample consisted of 446 students and 10rnphysical education teachers’ drawn from the three high schools.rnRegarding sampling technique, students were selected from each sample schools by usingrnsimple random sampling technique. Physical education teachers were selected on the basses ofrnavailability of sampling technique.rnThe research methodology employed in the study was a descriptive survey. Questionnairesrnwere the major data gathering instruments used in the study. Interview and observation werernsupportive data gathering instruments. Percentage and frequency count were used to analyzernand interpret the data.rnThe results showed that students level of participation in physical education class and inrndifferent sport is low, disability issues are not considered in high schools’ curriculum to givernchance for special need students; students’ and school administrators’ attitude towards physicalrneducation were low, instructional materials and facilities were inadequate, the allotted time tornphysical education was not enough, physical education was not considered as basic subject,rnphysical education teachers were not competent to teach physical education, and large classrnsize based on the findings, recommendation was made towards the curriculum to minimize thernexisting problem.rnAccording to this, physical education teachers should encourage students to participate, schoolsrnand community together should strive to fulfill instructional materials and facilities, creatingrnawareness on schools and students about physical education.rnThe concerned body at the Arbaminch Kentiba level should plan to build additional classes forrnsecondary schools to give solution for large class size, providing in-service training opportunityrnto those physical education teachers who are not competent to teach special need and regularrnphysical education students and others to solve the identified problems as recommended.