This study was conducted with the objectives of looking into what was going on in public initialrnteacher education provider institutions and of students in schools to expose them to real worldrnpractices. It was also aimed at investigating the views of personnel involved and challenges onrneffectiveness of instilutions implementing the program in Jimma Zone. To gather the necessaryrndata, questionnaire, semi-structured interview and focus group discussion were employed. Therndata was then tabulated and analyzed qualitatively using percentages.rnTo achieve the plllpose, 21TEls and schools practicum program coordinators and personnelrnmanaging schools in which students practiced teaching, 48 tutors, 93 mentors and 160 third yearrnstudent teachers were included. Different sampling techniques including simple random,rnpurposive and stratified sampling techniques were employed in the process of selecting thernrespondents.rnThe findings of the study show that implementing practicum program in TEIs and placementrnschools did not get suffiCient concern from front line institutions implementing the program. Arnpertinent and regular f ollow up from policy makers was not also in place. Thus, collaborativernpartnership between TEIs and schools did not seem to exist. As a result, tutors and mentors didrnnot play the various roles expected of them; student teachers did not have opportunity of gettingrnthe necessary skills and competencies ofteachingfrom actual field experiences. The managementrnof the schools and mentors had a negative allitude towards gelling involved in the training ofrnprospective teachers. Overall, the major facto rs affecting the effectiveness ofTEIs and schools inrnimplementing the practicum program were found out to be lack of not being informed the rolesrnand responsibility on the part of all personnel involved, shortage of finance and real resourcesrnnecessary to run the practicum programs. On the part of TEIs management there were lack ofrnwillingness and commitment to share available resources with schools; and inability to givernpertinent allention to the training of mentors, practicllln coordinators and mentor trainers.