This study was designed to evaluate the health risks faced by inhabitants living in the slum areas of Addis Ababa, Ethiopia. The levels of PM2.5 and PM10 and elemental composition of the PM10 were measured in indoors (in the kitchen and living room) and outdoors (at the roadside). A total of 75 sampling locations (45 indoor and 30 outdoor) were selected for the study. The levels of PM2.5 and PM10 were determined using an AROCET531S instrument, while an universal air pump was used for the sampling of PM10 for the determination of trace elements by inductively coupled plasma-optical emission spectroscopy (ICP‒OES). The health impacts of PMs on the inhabitants of twelve microenvironments (MEs), where they spend much of their daily time, were estimated. The total amounts of PM2.5 and PM10, and trace metals in PM10 found in the nine or twelve MEs ranged from 10.6-119, 128-185, and 0.007-0.197 μg m-3, respectively. According to the United States Environment Protection Agency (USEPA) guidelines, ten of the twelve MEs can cause significant health problems for inhabitants (HI > 1) due to PM2.5 and PM10. Thus, special attention should be given by stakeholders/inhabitants to minimize the health impacts on long-term exposure. This study assessed the risk of levels of trace elements on the inhabitants who spend most of their daily lives. The study revealed that the lifetime cancer risk values for the individual and cumulative trace elements were within the tolerable range set by the USEPA guidelines.