The main objectives of this study were to investigate the practice and challenges of sport federations and sport administrations in South Gondar zone. Data was collected through questionnaire; interview and observation were used as data collection instrument... In this study 6 youth and sport office leaders, 30 sport committees’ 30 sport officers’ 25 coaches and 60 players were participated. The designs of the study were used descriptive survey. The researcher was using descriptive survey method. The data collected were organized, analyzed and interpreted using simple frequency count percentage. The result of the research was found that there were the financial problem, the lack of well trained man power, the availability of equipment and facility were not adequate and shortage of incentives for coaches, athletes and other sport professionals; and lack of job integration among sport experts has been gained from the respondents. To overcome these problems, the following recommendations have been forwarded. Sport administrations, federations and other concerned bodies should assign enough budgets to run sport activities and competitions efficiently and effectively. And also try to gain income from the community, investors and nongovernment organizations. Playing fields, sport materials and equipments should be expanded for better results. The sport council and federations organize workshops for committees, sport experts, coaches, team managers and officials to capacitate organization structures. The governments