Solid waste management is both urban and rural problems. Every person is a potential generator of waste. This study was focussed on Prospects and Challenges of Solid Waste Management in Bole Sub City. The study was conducted by using both qualitative and quantitative approach methodologies. To determine the shares of the various sources of waste in the sub city, the mean daily solid waste generation rate by weight and volume of 1031 samples (385 residences, 358 commercial establishments, 208 institutions and 80 industries) was directly measured for five weeks. Result showed that residences generate the highest share (82%, 75%) followed by commercial areas 12%, 15%, street sweeping 3%, 1.2%, institutions 2%, 8.5% and 1%, 0.3% by weight and volume respectively. Since residences generate a larger proportion of waste in the sub city a survey was conducted on 385 households about their onsite waste handling. Result showed that 82.3% of the households use trash bag and plastics to store waste at home. On the other hand only 17.7% households responded that they reuse some items. Similarly, most of the households (83.6%) do not change their cloth wastes for plastic and other utensils to “Lewach” or sold to “Qorales”. The remaining households (7.3%) exchange their worn out clothes and shoes to “Lewach” for household utensils. An interview was also conducted with sub city waste management office about the current conditions of waste management problems. From this interview the following points were considered as challenges to improve the situation in the sub city. These are poor infrastructure, lack of properly designed collection route system, and lack of promotion on waste reduction, recycling and composting. In Bole sub city 121,164kg, 380167.11L of waste is generated per day by weight and volume respectively, with per capita generation of 0.31kg and 1.01L by weight and volume. Keywords: solid waste, waste generation, waste composition