Extreme data speed is the LTE standard's primary focus, but it is also a very complicated system that uses modern technology. Starting with optical technology for the backbone network and progressing to sophisticated electronics for signal processing and control. Planning a wireless network typically comprises several steps that are vital for a fruitful network design. The performance (capacity and coverage) of the 4G/3G network in Gondar city is poor due to the number of problems and it is not affordable for the city. The simulation at the end of this paper attempts to illustrate the key planning concepts using the atoll planning tool, which is utilized in this research to plan the capacity and coverage of LTE. Capacity and coverage analysis was performed to prepare a radio planning guideline considering possible network implementation in Gondar city. The outcome demonstrates that greater network coverage and optimal network capacity were achieved by taking into account network factors from the first nominal planning stage through the detailed planning phases in combination with pre-optimization requirements. As the simulation shows Stanford University Interim model becomes the better propagation model for the hilly morphology of Gondar City by 1800MHz. Keywords: LTE, capacity planning, coverage Planning