Systematic training plays a paramount role in equipping employees with the required knowledge, and skills in order to remain competitive in the dynamic society whether in developing or in developed world. The main objective of this paper was to investigate current practices and challenges of the training and development system of Ethiopian Petroleum Supply Enterprise. The study used survey data obtained through questionnaires, interview and secondary information sources to supplement the primary data. One hundred twenty four (124) questionnaires were distributed for the collection of data. Descriptive statistics was applied to analyze the questionnaire. Results show that the major challenges facing effective employees training included the lack of staff training policy in EPSE, loopholes in selecting trainees and insignificant support to training by the EPSE managers. Based on the findings, the author recommended that a regular formal need assessment of the employees should be done in order to identify employees' need in terms of skills and knowledge.