The main objective of the study was to investigate the effect of reverse logistics practice on operational performance in the case of Dashen Brewery Factory in Gondar city. In order to undertake the study, problems related to Lack of proper collecting system of the beer bottles and steel kegs, return bottles delaying that affects to predict the availability of bottles and steel kegs due to lack of collection center this leads high transportation cost expenses. Those are the critical forces lead this study into the forefront. The researcher was employed quantitative research approach in order to address the objective of the study. The study was used descriptive and explanatory research design with 192 samples was selected from production, packaging, quality assurance, finance, sales& marketing, logistics& warehousing and procurement and supply departments through stratified sampling techniques. The researcher used primary source of data & close ended questionnaire for collecting primary data. In order to analyses, interpret and present the data, SPSS version 26 was used. The collected data was analyzed using descriptive statistics (mean & standard deviation) and inferential statistics (correlation and multiple linear regressions). the findings of the study depicts that, there is good reverse logistics practices dimensions as the mean values of (remanufacturing, reusing, recycling and repackaging practice) were above the minimum requirement. From the findings all independent variables had a positive relationship with operational performance. The major findings of the study were, the dimensions of reverse logistics practices remanufacturing, reusing, recycling and repackaging practice had statistically significant effect on operational performance of the factory. Based on the hypothesis output the researcher concludes as; all dimensions of revers logistics practices had statistically significant effect on operational performance of Dashen Brewery Factory. The researcher recommends as the factory should give attention for remanufacturing, reusing, recycling and repackaging practice to improve operational performance.