The main purpose of the study was to assess the status and challenges in provision andrnorganization of non formal and Alternative Basic Education program in Addis AbabarnCity. So that the outputs of the study can ass ist to improve the effectiveness of the on-going nonformalrnand Alternative Basic Education program in Addis Ababa Administration. Althoughrnformal education has had great contribution for promotion of literacy, the shortcomingsrnthat go with it have led to the drop out in schools, increased literacy and general povertyrnin Addis Ababa City Administration. It is in this regard that this study identified the rolernthe status and challenges in provision and organization of Non Formal Education (NFE)rnand Alternative Basic Education program as an alternative to addressing issues ofrnpoverty, health illiteracy and development. The effectiveness of Non Formal Educationrn(NFE) and Alternative Basic Education program can depended on a number of keyrnvariables such as preparation of relevant curriculum, the availability of facilitators,rnfavorable learning environment and the methodology of Non Formal Education (NFE)rnand Alternative Basic Education program. A descriptive survey design was used. Datarnwas collected from the Regional Administration (bureau officers and sub city -rnofficers).Others were Wereda Adult Education Officers, Managers of adult and NFErnprograms, supervisors of adult and NFE programs, facilitators, adult and NFE learnersrnand graduates using simple random sampling and purposive sampling. The instrumentsrnfor data collection included questionnaire" interview schedules, observation schedules,rnattitudinal scales, focus'group discussions and document analysis for secondary data.rnOut of questionnaire disitibuted (230), an overall response rate of 89.6% (206) werernobtained. Secondary data included statistics on enrolment for learners, examinationrnresults and teacher dynamic. These statistics were collected from 'the RegionalrnDepartment of Adult Edi(cation, and NFE Centers. Data collected was then analyzedrndescriptively by use of frequ.e;ncy counts, means and percentage. The findings Fom datarnanalysis showed that 'the pf:q'gram is challenged by m any constraints: celJ,fer faCilities,rnunavailability of learning nu;tlerials, low perception of the program by the community andrnlow attention to the program i"{; providing supervision and support, assignment of untrainedrnfacilitators, low commitment of the facilitators and their instructional performance. Thesernproblems undermined the quality of education. Thus, the government and other concernedrnbodies should address these problems jointly. Hence, the researcher forwardedrnrecommendations based on the findings. So that in addition to making schools accessible tornthe needy children there should be need of fidfilling the required educational input (wellrntrained facilitators, adequate instructional materials etc), center facilities, paying incentivesrnfor bodies who work on the issue of the ABE program providing regular supervision andrnsupport to the centers and working towards, community awareness creation.