The purpose of this study was to assess the leaders’ policy understanding and implementation in secondary schools of East Gojjam Administrative Zone. To accomplish this purpose, the study employed a mixed research approach and sequential design. The data collection instrument was structured closed and opened ended questionnaires, semi-structured interview and along with document analysis. About 72 principals and vice principals and 78 department heads were involved in the study as respondents selected through stratified and random sampling techniques ,and about 9 supervisors and 10 principals and vice principals were involved in the study as interviewees selected through comprehensive and purposive sampling respectively. The study used the SPSS, V-26in order to analysis quantitative data, and then was carried out the mean; standard deviation; and one sample t-test method of data analysis. The main finding of this study shows that leaders have a critical problems in policy understanding due to lack of readiness, knowledge ,experience , qualification and absences of available training and documents; low level of policy implementation due to lack of education policy objective clarity and relevance ,implementing agency incapability’s ,lack of safety and incentive concer ns and major factors like non-reliability of data , insufficient students income and economic condition , lack of educational technology and facilities .Accordingly, the conclusion drown is that the school leaders policy understanding and implementation under consideration was found in problematic and below at lower level respectively. The present study recommends that the EGAZ education department experts should give training, policy related material to increase their policy understanding and implementation. The ARSEB had better increase the standards of secondary school leaders’ pre- and post-assigning and recruitment guideline and the MOE had better improve short and long term training to discharge leaders incapability’s .To minimize the major challenges faced in the study area ,the WEOs and regional government had better support based on the severity.