Energy efficiency improvement is a vital action to overcome the problem of energy crisis. In Ethiopia, industrial parks are becoming vast energy demanding and consuming sector. Bole Lemi I industrial park (BLIP I) comprises twenty factory sheds focused on the textile and garment industry. However, series attention is not given to energy efficiency improvement. Energy audit is not done for this IP starting from its operation, Therefore, Jay-Jay Textile Factory PLC, which owns three factory sheds inside BLIP is selected as a case study. The major objective of the study is to conduct an energy audit and energy efficiency improvement for Jay Jay textile factory without affecting the quality and the production. For the energy audit and data analysis, As-built drawings, energy bills, years of data records for major energy-intensive equipment, and lighting data are collected. SLD is modeled using ETAP 12.6 software and load flow analysis of the factory distribution network is simulated with MATLAB. Finally, energy efficiency improvement measures are recommended. Accordingly, the thesis finding shows that, the possibility of an annual energy saving of 380 MWh, which is around 10.28% of the total annual energy consumption. Energy intensity analysis is done in comparison with the benchmark showing there is an opportunity of saving 2,237,059.09 ETB/year by implementing energy efficiency improvement practices. By minimizing air leakage of the compressor and using an outside air system, the factory can save 45,403.86 kWh/year of energy or a cost saving of 47,873.84 ETB/year. Improving the factory lighting as per the required lux for the specific workstation results in an energy saving of 113,880.00 kWh/year. However, by using energy efficient lighting 311,433.60 kWh/year of energy or 328,687.02 ETB/year can be saved. Replacing magnetic ballast with electronics ballast 23,148 kWh/year of energy or 24,430.39 ETB/year can be saved. MATLAB simulation result shows that the distribution network active power loss reduced from 68.43 kW to 39.77 kW. On the other hand, installing an automatic centralized 484 kVAr shunt capacitor bank improves the PF from 0.75 to 0.9 and results a percentage loss reduction of 30.5 %. PF correction, using energy efficient lighting technologies, and air compressor leakage prevention found the main mitigating methods to save energy. Keywords: - Energy audit, Energy efficiency improvement, Garment industry