This study aimed to investigate the practice and challenges of primary school financial resource management in the Gambella town administration of the Gambella Region. The research adopted a mixed methods approach, utilizing questionnaires and interviews as the main data collection instruments. A total of 102 respondents from five schools and the town education office participated in the study. The collected data were analyzed using descriptive statistics for quantitative data and narrative analysis for qualitative data obtained through interviews. The findings of the study revealed several challenges in the budget implementation process and financial resource utilization in the selected government primary schools. The major challenges identified included the lack of stakeholder participation in the budget implementation process, absence of follow-up and monitoring auditing activities, and the resulting erosion of accountability and transparency in budget utilization. Based on the findings, it is recommended that the town education office and schools take measures to increase stakeholder participation in the budget implementation process. Additionally, schools should report their budget performance to the relevant agencies, and the town education and finance office should establish regular monitoring and evaluation mechanisms. These measures can help address the identified challenges and improve the financial resource management practices in primary schools in the Gambella town administration.