The purpose of this study was to asses the practices, challenges and prospects of ABE progam in Horo Guduru Wolloga Zone. The method employed in the study was descriptive survey. Review of available literature on ABE program and relevant data were gathered from 4 educational officials, 5 cluster supervisors, 6 ABE centers, 30 ABE center facilitators, 24 ABE students, and 25 CMC members. Respondents were selected by purposive, availability and simple random sampling techniques. Data collection tools were questionnaire, interview, focus group discussion and observation. Data obtained from questionnaire were analyzed using statistical tools like frequency and percentage. The data from interview, focus group discussion and observation was analyzed qualitatively. The findings from data analysis showed that the program is challenged by m any constraints: center facilities, unavailability of learning materials, low perception of the program by the community and low attention to the program in providing supervision and support, assignment of untrained facilitators, low commitment of the facilitators and their instructional performance. These problems undermined the quality of education. Thus, the government and other concerned bodies should address these problems jointly. Hence, the researcher forwarded recommendations based on the findings. So that in addition to making schools accessible to the needy children there should be need of fulfilling the required educational input (well trained facilitators, adequate instructional materials etc), center facilities, paying incentives for bodies who work on the issue of the ABE program providing regular supervision and support to the centers and working towards, community awareness creation