One of the global food safety issue is food poisoning with mycotoxins produced by fungi. The consumption of mycotoxin-contaminated foods is responsible for several foodborne diseases outbreak worldwide. While peanuts and peanut products are important food in both economic and nutritional significance in tropical and subtropical regions. Their vulnerability to aflatoxin contamination, for example, makes them unsuitable for human consumption. This study aimed at assessing the aflatoxin contamination of locally processed peanut butter in Addis Ababa city. 20 samples of peanut butter from ten different firms (2 different batches per firm) were purchased from local markets, supermarkets, and retail shops in the city. High-Performance Liquid Chromatography method was used for aflatoxin analysis in the samples. The total amount of aflatoxins detected ranged from 14.23µ/Kg to 102.45µg/Kg. The percentage of positive samples for AFB1 were 100 %, AFB2 90%, AFG2 70%, & AFG1 80%, with level ranging from AFB1 12.83- 45.02 µg/Kg (mean 28.93 µg/Kg), AFB2 0.82-12.46(mean.6.64 µg/Kg), AFG1.18 – 34.18(mean 17.68 µg/Kg), AFG1 1.18-34.18(mean 17.68) While 100% of the samples were contaminated with aflatoxins, in which 90% had the level above the maximum permissible limit set by of EU, FAO/WHO and ES (Ethiopian standards). The high contamination levels of aflatoxins pose a serious safety concern to the public as they are widely marketed and consumed in Addis Ababa City. Lack of quality control and protective measures throughout the peanut butter production chain may be the contributing factors towards this contamination. This suggests that adequate care should be taken throughout the peanut production chain so as to produce peanut products which are safe for human consumption. The results further suggest that Safety practices along the peanut value chain that is from the farm throughout production and storage will significantly minimize the aflatoxin contamination in food.