The research project set out to identify the gap between expectations and practices of Monitoring and Evaluation system in Ministry of Mines (MoM) and Geological Survey of Ethiopia (GSE). (MoM and GSE are established to improve development of the mineral resources in order to enhance the contribution of the Foreign Currency earnings of the sector in the national economic growth of the country.) Data for the study is collected using the questionnaire and detail interview. The result of the study shows that the projects implemented by these two organizations was not effectively monitored and evaluated; the study also showed that the organizations have many challenges to implement the system of M&E. The four groups of the research participant’s namely management, M&E experts and project team leaders have very good expectations from the M&E system. However, other experts group have poor expectations. The gap between expectations and practices was very high. Recommendations are given. Some other points are discussed in the thesis.