A rapidly expanding human population and growing trend of urbanization, problems related to the management of municipal solid waste have become of considerable importance in Ethiopia from both environment and human safety. This study therefore assessed the challenges of solid waste management and community awareness about solid waste disposal in Bure town, west Gojjam zone, Amhara Region. Samples were selected using purposive and systematic sampling techniques. The study was conducted on the selected 370 households for questionnaires and 21 households for field measurements, characterized into different classes. Both primary and secondary data sources were used. Primary data was collected through questionnaires, interviews, field measurement and observations. Secondary data was obtained from different documents and office reports. The data collected were analyzed using qualitative and quantitative descriptive methods. The result showed that sacks and plastic bags were used as a main temporary solid waste collecting and storing material in the study area. Households’ solid waste disposal options were stream/ gully sides (35.7%), open space (28.1%), burning (23.4%), road side (11.34%) and others (1.8%). As indicated by the respondents (64.4%) of the community said that the solid waste management system of the municipality was poor and only 42.6% of the communities have been participated in solid waste management practices. There are a number of reasons raised to low participation of community on solid waste management. The households’ solid waste generation rates of Bure town were 1.12 kg /day, 33.6 kg/month and 403.2 kg/year. Composition of the solid waste generated in Bure town was predominantly biodegradable component (78.64%) and the rest was non biodegradable. Only 20.8% of the residents had a practice of making compost from waste. Lack of awareness, poor coordination among the residents, lack of efficient implementation of enacted rules and regulation by concerned bodies were the main factors for poor waste management. To alleviate the problems in the study area handling, separation, collection and disposal system of solid waste should be established and enhanced. Poor municipal solid waste management is practiced in the town. Therefore, it is recommended that the municipal should establish micro and small scale enterprises, vehicles and rise community awareness about solid waste management