ABSTRACT The purpose of the study was to explore English teachers' understanding and practice about teaching of speaking skills particularly in Enjibara and Agew Midir secondary and preparatory schools. The study was also intended to assess the challenges that teachers face in teaching speaking skills. The data were gathered through questionnaire, interview and classroom observation. By using comprehensive sampling all teachers filled questionnaire. Semi-structured interview questions were also employed with randomly selected teachers. Besides, actual practices of four randomly selected teachers were observed and described. In this study, descriptive survey research design was used. The data which had been collected through the instruments were analyzed and interpreted in quantitative and qualitative methods. The findings reveal that teachers do not have clear understanding about effective teaching methods of speaking skills. The results also show that teachers commonly use traditional techniques (especially question and answer, lecturing and dialogue repetition) to teach speaking skills. Furthermore, the findings depict that there are major challenges that teachers face in teaching speaking skills such as the students have lack of interest, use their mother tongue, have lack of awareness, are shy and afraid of making mistakes, focus on grammar, have poor background and read texts instead of speaking orally. Teachers also have lack of awareness about current techniques of teaching speaking skills. In addition, unsuitable desk arrangement, large class, large volume of textbook and shortage of time are challenges. Based on the findings summary, conclusions and recommendations have been drawn.