The purpose of this study was to explore the practices and challenges offllnctional adult literacyrnprogram in building the capacity of Adult women to a!lain economic empowerment. Targetrnpopulation of the study were self employed adult women engaged and run income generatingrnactivities in kebele 57 and 58, market shelter in Nifas-silk sub-city and in kebele 59, marketrnshelter in Akaki sub city. Mixed research method (quantitative and qualitative) was employed forrnthe study. Questionnaire, interview, focus group discussion, document analysis, observationsrndata collection techniques were employed to gather the necessary information for the study. Andrnthen the data is analyzed using statistical instruments such as ji'equencies, percentage and meanrnvalue to estimate the population characteristics under study and the qualilative data alsornanalyzed in statement form. The findings indicated that flll1ctional adult literacy builds therncapacity of adult women with which they can a/lain economic empowerment. However, lack ofrnbasic literacy skills among illiterate adult women and inconsistent follow up and technicalrnsupport were the major challenges or problems faced by adult women during and afier therntraining to operate their business operations which in turn become a barrier to expand andrndevelop their business activities. Finally the researcher recommended that good practices ofrnWISE should be replicated by other organization to empower other groups of women found inrnpoverty situation on the other hand, Women In Self Implement (TÂ¥!SE) Organization should duernattention on the problems to achieve its intended objectives adequately.