The growth of traffic congestion on many streets and highways is a major concern to traveler’s administrators, merchants, developers and the community at large. Its detrimental impacts in terms of longer journey times, higher fuel consumption, increased emissions of air pollutants, greater transport and other affected costs and changing investment decisions are increasingly recognized and felt across the country. Therefore, in this paper the level of service and congestion were measured using traffic and geometric data for the selected intersections have been collected and SIDRA (Signalized and Unsignalised Intersection Design and Research Aid) intersection software. Therefore, it is crucially important for an unsignalised intersection to operate at the best Level of Service (LOS) possible and the lowest possible Degree of Saturation, Control Delay and Queue Length. In this study, SIDRA 5.0 software package was applied in analyzing the collected data. Peak hours were determined by the means of traffic counts. The SIDRA 5.0 programmer requires the Peak Hour Factor (PHF) to be the key variable for the analysis. The software was then applied to get the LOS of the roads affected as well as the overall LOS of the intersection. From selected intersection Abay mado market intersection has a Level of service Value of “F” from Ayer tena and CBE approaches. Maim market intersection has a Level of service Value of “C”and “Aziwa hotel approach and new bus station and papyrus approaches respectively. New bus station intersection has a Level of service Value of “D” from AWSCOD approach and the other approaches have LOS “F”. Those intersections have LOS “F” also have high value of degree of saturation, delay and queue length. In general study intersection in the city are characterized by unstable operation and significant delay. Congestion is likely occurring at the boundary intersection, as indicated by high delay and extensive queuing. In Bahir Dar city most of the intersections are closely spaced with high pedestrian, Cyclists, Bajaj and other motorized vehicular traffics so that their performance is highly affected by it. The study concludes that provision of public transport in line with proper crossing and sign marks, installing an overpass at Abay mado market and Main market intersection and restriction of illegal parking and street trading are the remedial measures recommended for the intersection to have high level of performance.