The purpose of this study was to assessing the practice and problems of educational materials resource management in Lay GaintWoreda secondary schools. It was concerned with material management functions (such as, planning, purchasing distribution,Storage,Maintenance,Inventory and controlling), challenges faced for effective management and utilization of educational material management, and implementation of policies and guidelines. To meet already stated objective descriptive survey design was used to carry out this study,which helps researcher to have understanding of the problem by studying the current status, nature of the prevailing conditions, practices and trends through relevant and precise information.Four groups of respondents were participated in the study. These participants were academic and administrative staff (school principals, vice principals, department heads, supervisor, Plasma technicians, store keepers, purchasers, lab technicians, librarians, finance officers), Woreda Material distributers and Parent Teacher Association members. As of study areas, 5 secondary and preparatory schools were selected comprehensively. Respondents were selected by comprehensive sampling technique due to their direct relation with the issue under study and also to gain sufficient information. The data were collected through questionnaire, interviews and personal observation. Data gathered through questionnaire were quantitatively analyzed using SPSS mean value, standard deviation whereas the data gathered through interview open ended questions and observation were qualitatively analyzed. Having gone through these all the study found out that participation of stake holders in material management function process were not run properly; Integrated material management functions were not properly implemented; Lack of training and continuous supervision in the area of educational material management was challenging.Moreover lack of continuous supervision and controlling system from outside and inside the schools made accountability and responsibility infective. Based on these findings, it is found legitimate to forward some recommendation. Therefore capacitating professionals’ through training assist users in putting these materials in to effective usage. To develop positive attitude towards the management and utilization of educational materials, school managements should work closely with the school community and stakeholders. Organized and integrated education