This study was attempted to identify major challenges and opportunities of students with disabilities participation in physical activity and extracurricular activity in some selected west gojjam secondary and preparatory schools. Using mixed type of research design, it is attempted to seek out the challenges and opportunities affecting afore mentioned student’s participation in physical activities as well as extracurricular activities. Structured questionnaire for teachers, for students with disabilities, interview for school administrators’ and observation using check lists was administered to a total of 66 deliberately selected subjects or informants in selected schools. The data obtained through these tools is analyzed both quantitatively and qualitatively. Quantitatively the analysis was made using tables and percentage and qualitatively using words. Based on analysis made major findings were drawn, as the findings shows that factors and challenges associated with materials, equipment’s, school compound, absence of disability sport competitions, poor pupil to pupil support, limited professional development trainings, incomprehensive curriculum was found as a major factor which limits participation of disabled students in school Physical activities and extracurricular activities. From the major findings, the researcher provided possible solutions for teachers, curriculum experts, students and all concerned bodies. Accordingly, curriculum experts and policy makers should reconsider teaching materials in different levels to make them inclusive, Physical education teachers should play great role in creating pupil to pupil interaction among disabled and non – disabled students, prepare disability sport competitions as for non-disables ones, create conditions for physical education teachers to take part in professional development trainings.