The main purpose of this research was to assess urban land management practice and to identify the factors that hinder land management practice in Jimma city, Ethiopia. The rationale for doing this research has originated from the practical problems and the will to contribute knowledge to the field of land management as regards institutional perspectives. So as to meet the study targets this research employed mixed method approach, and the data were gathered from various sources by applying different methods. All the necessary data were gathered from both primary and secondary sources. The sample was selected by using the probability sampling technique, simple random sampling method, for land customers, and the non-probability sampling technique, purposive sampling, for key informants. 223 samples of respondents were selected. In addition, the researcher collected information through interviews and Focused Group Discussions (FGDs) with purposively selected team leaders and managers. To analyze, the collected data, a combination of both quantitative and qualitative analysis methods together with descriptive and inferential statistics were employed. Quantitative data, which were generated from the questionnaire survey, were analyzed by using both descriptive statistics in the form of Tables, Frequency, Percentages, and inferential statistics by using a multiple linear regression model through Microsoft Excel and SPSS version 26 software. Qualitative data that were collected from field observation, FGDs, and interviews were analyzed through descriptive methods. The findings revealed the existence of legislation and implementation gap, lack of skilled manpower, lack of technological advancement, lack of commitment and focus, corruption, and institutional set up as the major factors hindering the urban land management practice. To facilitate efficient and effective land management practice, a well organize institutional structure fulfilling skilled, motivated, competent staff and technological advancements are some suggestions.