The objective of this work is to enhance student's participation in peer learning so as to improve the teaching-learning process in the classroom with a proactive participation of students. The study is conducted by collecting primary data from 8 peer-learning groups of 3rd-year section 2 economics students. Four are followed to conduct the study. First problems were identified, second strategies to tackle the problems were designed, at third the designed strategies implemented and fourthly impact of the interventions were evaluated. Accordingly, the major or dominant factors identified are the language problem, teaching methodology problem, lack of encouragement from teachers, fear to friends as well as teachers, teacher's low follow up, and student's lack of commitment. To enhance students' participation in pear-learning some interventions were applied such as using local language (Amharic) in addition to English to reflect their views, using more of the question and answering during interactive teaching methodology, building self-confidence and creating positive interdependence by using cooperative learning system and giving reinforcement.