The purpose of this study was to examine the existing practices and challenges of Integrated Functional Adult Literacy Program in eastern Ethiopia. To achieve this objective, the researchers used mixed research design. Questionnaires, interview and focus group discussions were used as viable instrument for data collection. The questionnaires were filed by 302 adult learners and 153 facilitators. Data were analyzed using descriptive statistics. The findings revealed that since the introduction of adult education programs with an integrated manner, harmful traditional practices are reduced, community participation in environmental conservation are growing; societal life skills and usage of new agricultural technologies are improved. However, dysfunctional management structure, poor institutionalization, integration and coordination among the sectors, lack of financial package, trained personnel and low and inconsistent salary were the major bottlenecks in the implementation of the program. Therefore, collaborative efforts among government, NGOs and the community need to put in place to alleviate both human and non-human related problems for the effective realization of the program with pioneering structure, financing,organization and management to achieve transformational and sustainable development goals.