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The growth of traffic congestion on many streets and highways is a major concern to travelers, administrators, merchants, developers and the community at large. Congestion reduces the effective accessibility of residents, activities and jobs resulting in lost opportunities for both the public and business. This issue is now days a great concern for Ethiopia and major cities in the country. Due to this evaluation of traffic congestion and determination of level of service with the cause of traffic congestion is the first step. From these major cities in Ethiopia, Adama city is now affected by traffic congestion. In this study the level of service and congestion measure using SIDRA intersection software and travel time approach respectively and cost of congestion analysis were done for only four most congested intersections. After the analysis there exist 29,189 vehicles per day on Posta-bet intersection only which is found on the main highway. The total segment delay analysis shows 1067veh-min was lost on the selected four approaches. And also on average about 39.6 million birr lost on one approach per year.