The aim of this study was to investigate the current leadership practices of School improvement program and to find out leadership challenges hindering the effective implementation of School improvement program in the primary schools of Moretina Jiru woreda. The research methodology used in the study was both quantitative and qualitative approaches which follows the descriptive survey research design. Consequently, a pre-tested q,uestionnaire was filled by teachers, and students. For the qualitative portion, interviews were administered. The sample of respondents were selected from the population and 132 teachers and 253grade 81h students were selected by simple random sampling method. '!'eachers and students were questionnaire respondents, whereas 8 school principals, education office head and woreda administrator were selected for the key informant 3 7 3 out !JJ;,the 495 distributed questionnaires were given back, producing an overall 96.881Jf> return rate. The reliability statistics result in the students' questionnaire items was found to be 0.81 and for teachers' questionnaire items was found to be 0. 72 which is acceptable. Descriptive statistics such as frequency percentage, mean, standard deviation and inferential statistics, one sample I-test was taken to analyze the questionnaire. The findings of this study revealed that major roles of leaders in practicing school improvement program such as fostering effective relationship, represent visionary/ leadership, providing instructional leadership, especially in achieving student academic performance, and facilitating and developing ' leadership has not been working effectively. lack of skill, lack of commitments, and lack of collaboration among stakeholders are the major leadership challe!1-ges in the implementation of school improvement pN.Jgram. Finally, based on the findings, conclusions, and recommendations were made on capacity building and empowering of school leaders on transformational and instructional leadership to do their work effectively. School leadership should mobilize the community for the effectiveness of the program .