This study examined the effect of e-procurement on Firm Performance in selected Bureaus of Addis Ababa City Administration. The study employed a quantitative explanatory research design. Primary data were collected from 169 respondents selected through stratified random sampling from procurement, finance, ICT, and administration departments, using a structured five-point Likert scale questionnaire, while secondary data from bureau procurement manuals and policy documents informed the theoretical framework. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis via IBM SPSS Version 26. Descriptive findings indicated a high level of implementation agreement, while correlation analysis revealed significant positive relationships between all independent variables and firm performance. The multiple regression analysis confirmed that all four e-procurement dimensions positively and significantly affected Firm Performance, with E-ordering emerging as the strongest predictor (𝛽 = 0.346, p<0.001), followed by E-tendering, E-invoicing, and E-sourcing. This study provides strong empirical evidence that e-procurement dimensions significantly and substantially improve Firm Performance Selected Bureaus in Addis Ababa City Administration. Moreover, the study reveals that the benefits of e-procurement extend across multiple performance dimensions simultaneously. Cost reduction, operational efficiency, service quality, and lead time performance all improve with e-procurement adoption, indicating that digital procurement represents a comprehensive solution to the long standing efficiency Addis Ababa Bureaus’ procurement function. Therefore, the study recommends that the city administration prioritize strategic investments in the sphere of electronic tenders and ordering platforms together with user training in the framework of the national eGP system.