This study was designed to investigate the implementation of continuous assessment and its hindering factors in second cycle primary schools of Mecha woreda. Accordingly, research question were formulated to guide the study. The target population of this study were teachers of primary school in general and second cycle primary schools in particular. From the total of 99 primary schools in mecha wroeda, 10 second cycle primary schools were selected using purposive sampling technique; because the researcher has assisted these schools since 2005 and these schools comprise many number of teachers. The sample for the study consisted of 149 teachers they were selected by comprehensive sampling technique . Questionnaires consisted of closed and open ended questions were used as the data gathering tools. It was substantiated with observation .In addition, students evaluation criteria was critically analyzed to recommend it. Later on, the collected data was organized, tabulated and interpreted using both quantitative and qualitative analysis. Descriptive analysis such as mean, percentage and frequency tables were employed to study. Data related to the current implementation of continuous assessment collected though closed ended questionnaire. The data obtained from open-ended questionnaires, observation and documents were qualitatively analyzed using descriptive analysis after the themes/ categories stated under related topics. The findings of this study revealed that ,primary school teachers were not use continuous assessment guiding principles, feedback and remedial instruction and were not use various continuous assessment methods frequently and effectively. In addition they did not follow test construction principles when they have prepared test. The problems were caused that hinders the implementation of continuous assessment in second cycle primary schools of mecha woreda included like large class size, lack of 13 teachers training, lack of commitment, work load of teachers, lack of regular supervision, lack of uniformity and standardization in continuous assessment practice in schools and at woreda levels. Finally, this study recommended that, the major challenges should be alleviated from the school level and at all the education systems by arranging major solutions together as a responsible citizen for the success of students specifically and for the improvement of the quality of education in general