The paper is designed to Assess the Employees’ Performance Appraisal Practice and Challenges i n Debub Global Bank S.C .On the basis of data collected through questionnaires and interview; the researcher have tried to disclose some of the real problems of performance appraisal practice based on the opinion of the respondents in this Bank. The questionnaire was distributed to 68 employees of the bank working in head office: in which 54 were fully completed and returned. The questionnaire was distributed to the employee’s on the basis of simple random sampling based on respondent willingness and cooperation of the respondents. The data collected were analyzed using SPSS 23.On the basis of the data obtained from the respondents, lack of clarity of performance appraisal standards inadequacy to reflect the performance of the employees’ jobs and duties, and manager related problems are identified at Debub Global bank S.C. In Addition, the researcher has discovered that evaluators usually do not continually record or document the performance of employees over the evaluation period. In this regard, it was identified that evaluators evaluate the performance of employees on the basis of recent behaviors’. Based on the findings of the study, the researcher has recommended that Performance appraisal standard should be revised in participation of the employees for they are the actual persons who do the job and evaluated. In order to explain employees who do not know why performance evaluation is conducted the Bank’s management should create awareness on purpose of performance appraisal. The Bank’s HR directorate should follow up those raters who are not having file and support those using it now. The Bank’s management should give training to supervisors and managers who are responsible for conducting performance evaluation. This will boost raters’ ability to assess and advance raters’ unfairness.