Now-a- days, the content, use, negative effect of chat has become known. However, a comprehensive study on the history of chathas not been the focusing area of researchers. So, this study focuses on the study of the history and effects of chat in Bahir Dar and its surroundings at present. The purpose of this thesis is to reconstruct the history of chat in Bahir Dar area and to add some-knowledge for further research. Bahir Dar area is one of the production and expansion sites of chatin Ethiopia. In this study it was found that chat chewing habit has been growing, cultivation of chat is expanding and taking over some farm lands meant for other cereals, it is being traded widely including with far away paces, it is considered a formal trade and licensed and taxed, and the trend doesn't seem to abate. Moreover, in this study the dangers of the habit and its accompanying problems are noted and the challenges are here to stay with the society.