The purpose of this study was to investigation the magnitude of educational wastage of primary schools in Lanfuro woreda . Attempts are also made to identify the major factors that contribute to educational wastage and suggest possible strategies to alleviate them. To this end, descriptive survey method was employed to reveal the current situation of high rate of grade repetition and drop-out (educational wastage). The data regarding enrolment, repetition and drop-outs were obtained from Lanfuro woreda educational department and sample school’s document. The study included five schools, 280 students, 46 teachers, and 5 principals of sample schools. Sample schools were selected using stratified sampling technique to give focus both rural and urban schools. random sampling technique was applied to select teachers and students (drop-outs and repeaters). Principals were selected using purposive sampling technique. The data gathered through questionnaire, was analyzed using mean, median, and percentage.