The general purpose of this study was to examine teachers' and students' perceptions and practices of peer-led learning in Ghion secondary and preparatory school in Bahir Dar City, Ethiopia. To conduct the research, quantitative and qualitative methods were employed. The sample of the study was taken from the population of 41 teachers and 629 students. Proportional stratified sampling technique was used to limit number of respondents of the sample groups.All 41 teachers and 189 students (grade 9th 102, grade 10th 69, and grade 11th 12, & grade 12th 6) were included in the sample. The main instruments of data collection were both open-ended and close-ended questionnaires. The findings of the study revealed that teachers and students have perceived peer-led learning positively. In spite of their good perceptions, their practices of peer-led learning were low. The opportunities to strengthen peer-led learning were teachers' and students' positive perceptions and distribution of check lists in the school. To conclude, school teachers and students have positive perceptions and low practices of peer-led learning. There is no significant difference in their perceptions. Based on the major findings, the researcher recommended minimizing problems encountered and maximizing the implementation of peer-led learning.