The proper management of used lubricant oil is crucial for reducing the negative impact on the environment. This study evaluates the current used lubricant oil management practices in Bahir Dar, Ethiopia, and aims to identify potential environmental impacts associated with these practices. Through a review of literature, field research, and interviews with stakeholders and experts in the field, this study characterizes the used lubricant oils in Bahir Dar City and compares them to the properties of used lubricant oils from other countries. Qualitative and quantitative research methods were employed to gain an in-depth understanding of present practices and attitudes towards used lubricant oil in Bahir Dar. The survey results suggest troubling trends in the awareness and behaviors surrounding the handling and disposal of spent oil. This study focuses on analyzing the samples of used lubricating oils in Bahir Dar, Ethiopia, to better understand the composition and metal concentration of the city's waste oil. The data show that the used lubricating oil in Bahir Dar has a complicated composition with varied amounts of components and additives. The analysis found high quantities of metals including copper and lead in the oil, indicating serious corrosion and wear. Metal concentrations in used oil samples surpass allowed levels, posing a risk to the environment and human health. The report also estimates the annual production of used oil in Bahir Dar, emphasizing the importance of appropriate waste oil treatment procedures to reduce severe environmental consequences. Heavy metals with diverse ecological potentials include zinc, copper, lead, chromium, and cadmium. Inadequate disposal can have negative consequences for human health and the ecosystem, including bioaccumulation in the food chain. Acid rain potential (ARP) and ecotoxicity potential (ETP) are critical considerations. The potential contribution of phosphorus and nitrogen to eutrophication, which results in hazardous algal blooms and oxygen depletion in aquatic habitats, is referred to as eutrophication potential (EP). The study also considers energy consumption, environmental impact, and cost-effectiveness. Hydro-treating, distillation, and acid-clay treatment are suitable for removing pollutants and impurities. This current used oil management practices in the city pose significant environmental risks and requires the implementation of improved management practices that promote environmental sustainability. The research provides information decision-making on used lubricant oil management in Bahir Dar. The results of this research contribute to the development of improved management practices in the city, ultimately mitigating its negative environmental impact.