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 assist to improve the effectiveness of the on-going nonformalrnand Alternative Basic Education program in Addis Ababa Administration. Althoughrnformal education has had great r;ontribution 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,rnaltitudinal 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 Education, and NFE Centers. Data collected was then analyzedrndescriptively by use of freque;ncy counts, means and percentage. The findings ji-om datarnanalysis showed that Â·the prq'gram is challenged by m any constraints: celJ.ter facilities,rnunavailability of learning mÂ¢terials, low perception of the program by the community andrnlow attention to the program irj, 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 fulj7lling 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.