The purpose of this study was to investigate the practice and challenge of integrated functional adult literacy (IFAL) program in Dera Woreda South Gonder Zone. The study was guided by pragmatism paradigm. Convergent research design was used and both quantitative and qualitative smethods of data collection were employed. 146 adult learners (96 males, & 50 females), 46 facilitator and 3 experts of IFAL program in Dera woreda were participants of the study. Questionnaires, interview and document analysis data gathering tools were employed for the study. Frequency, percentage, chi- squre test and thematic analysis were used for data analysis. Finally, Findings showed that many of the IFALP learners were a farmer with the age range from 15-45 and the most facilitators were 10 completer working in farming activities; In the program various themes were delivered based the need and economy of the participant; The learners learnt in comfortable learning center and time; the stakeholder participation in IFALP was low; absence the formulating administrating structure of the program; creating awareness about IFALP program for enrolling and increasing the learner of the program; The performance of the learner assessed by test, and asking the question; IFAL program helps to know the word and number and to increase the agricultural productivity from time to time; and The hindering factors of the IFAL program in Dera Woreda were absence ownerships the IFAL program; lack of interest the participants of the program, have not given the training opportunity for facilitator; low participation of the stake holder; absence of their own learning center; absence of management structure of the program; absence guideline document of the program, and lack of teaching skills of the facilitator; and high workloads of the learner. For the effectiveness of the IFALP the researcher recommended that is should become to create awareness about the program, formulate their sector (should become to work separately with education sector), construct the learning center, work with various stakeholder, formulate administrating structure of the program, and controlled the implementer of the program.