This study was designed to investigate a comprehensive study on practice and challenges of industries Participation in implementation of occupational competency assessment in Addis Ababa. A combination of quantitative and qualitative methods was used to achieve the objective of the study. Purposive sampling under non-probability sampling method was employed. The data were gathered using different data collection techniques which includes, survey, focus group discussion, key informant interview . Industries practice and involvement in occupational competence assessment process in Addis Ababa is found very poor due to many factors. The finding indicated that, even though majority of manufacturing industries and hotels experts insured their competency by OCACC, significant number of employees was not certified. Industries consider participation in an Implementation of Occupational Competency assessment as losing their production time and material. As a result, industries poor involvement in occupational competence assessment process has a great influence in creating quality assessment process and getting equipped and qualified experts for the industry sector.