As the world's population continues to rise, there is a mismatch between supply and demand for housing. Ethiopia, like the rest of the world's developing countries, is presently challenged by the problems of population growth and housing scarcity. To expand the number of affordable housing for low-income individuals, numerous solutions must be investigated. One such approach is to use Expanded Polystyrene (EPS) in a housing project. The study was conducted to investigate the stakeholder perspectives on EPS technology; awareness, factors hindering EPS adoption, and advantages. Finally, this article compared the life cycle cost of EPS to that of conventional HCB construction. Utilizing an identical project design and the Life Cycle Cost (LCC) technique, expanded polystyrene structures and HCB block buildings were compared. Using closed questionnaires, the stakeholder perspective on EPS implementation wasinvestigated. Only 29.54% of respondents did not know that EPS is a construction material, according to the survey's findings, which indicate that 70.45% of them did. The most typical benefits of EPS, from the perspective of all stakeholders, are low weight/easy transportation, material and labor savings, simplicity of installation, and soundproofing. Similarly, Net Present Value was used for the economic assessment. Buildings have a total life cycle cost, and EPS-based construction would be 34.58% less expensive than traditional concrete-based construction. The results of this study show that utilizing EPS for residential building construction would be financially advantageous in the long run and that including LCC in the design phase early on would be advantageous to all parties engaged in the construction industry. Keywords: Life cycle cost analysis, EPS, HCB, Net present value, Low cost