The main purpose of the study was to assess the employability of AdamarnUniversity graduates of the Industrial Department in the years 2000-rn2006. To this end, the study employed a descriptive survey method and arnpurposive sampling technique to select 142 employed graduates currentlyrnworking in Addis Ababa city Administration, three DepartmentHeads,27rnInstructors and 10 Assistant Instructors out of 60 staff members of thernUniversity in the Industrial Department .Moreover, a snow ball samplingrntechnique was used to select20 unemployed graduates in Addis Ababa.rnAccordingly, the study involved a total of 202 samples. The data wererngathered through three sets of questionnaires . The first set wasrnadministered to the employed graduates, the second set to the Universityrnstaff members ,and the third set was filled by the unemployedrngraduates. The data were analyzed quantitavely, using frequencyrndistribution,percentages,spearman rankorder,and chi-square procedurally.rnThe analysis revealed that the employment rate of the graduates had beenrndecreasing from the year 2000 t02006, the relation between the Universityrnand employing agencies was ranked first among the factors determiningrnemployability of the graduates, the training is relevant to the existingrnlabour market only to some extent .And finally it was observed that therernwas a mismatch between the syllabus of the University and that of thernNational TVETs resulting in the occurrence of a skill gap among most of therngraduates.rnFrom the analysis, it was recommended that the university shouldrnstrengthen its relation with employing agencies, its syllabus s hould bernrevised to match with that of the National TEVEs ,and conduct a tracerrnstudy on the actual labour market condition to improve the employability ofrnthe graduates ..