It is believed that the possibilities of integrating environmental issues into the formal and nonformal education programs depend on the capacity of teachers who put such programs into effect. A pilot project, aimed at building the capacity of schools in Ethiopia to address key environmental issues, was initiated in 2004. Among the major strategies to achieve the goal of the project was empowering teachers to solve local environmental problems. This paper reports the achievements and limitations of the project in relation to teachers' empowerment. The results indicate that teachers who took part in the in-service training on natural resource management have taken distinct steps to integrate environmental issues into their lessons, establish environmental clubs and start school nurseries. The study also indicated some limitations. The handbook prepared for the training purpose had little provisions to guide the practical application of some of the principles of natural resource management discussed therein. The other limitation was the insufficient effort made to build (directly) the capacity of environmental clubs and community leaders. Some recommendations have been put forward in view of these findings. (Contains 3 tables, 1 figure, and 1 note.)