Abstracts Good governance in land administration is an important tool for smooth progress and sustainable development of a nation as it deals with the ultimate resource of human beings. The government of Ethiopia has been attempting to modernize the land administration system so as to provide appropriate service with regards to land sector both in the urban and rural areas. Given that, government is the only service provider, the efficiency of land related services has been questionable. With this assumption, this research aims to evaluate the practice of land administration from the perspective of good governance principles in Nifas Silk Lafto sub-city of Addis Ababa City Administration. Mixed research approach was employed to achieve the objectives of this research. Both primary and secondary data sources were used to collect the research data. The primary data were collected by using questionnaire, interview and focus group discussions; whereas secondary data were gathered from various literatures and documents. Descriptive analysis has also used to get full understanding of the situation, which included tables, figures and percentages. The study found out that the organizational setup, administrative capacity and staffs commitment were major challenges to provide appropriate land administration services to the customers. The institutional arrangements of land administration are so complex, whereby mandates are duplicated and overlapping. The organizational setup and its capacity is so bureaucratic, corrupted and requires improvement in terms of resource allocation, reorganization, continuous capacity development and periodic evaluation. The paper recommends on the need to coordinate the fragmented institutions; intensive capacity building and training to satisfy land customers; decentralizing responsibilities and accountabilities to wereda level to promote land related services for dwellers in transparent, accountable, sustainable, effective and efficient manner for good land governance. Key words: land customers, services, fragmented institutions, capacity, corruption