We s h o w h o w to decompose e ciently in parallel any graph int o a n umber,~ , o f outerplanar subgraphs (called hammocks) satisfying certain separator properties. Our work combines and extends the sequential hammock decomposition technique introduced by G. F rederickson and the parallel ear decomposition technique, thus we call it the hammock-on-ears decomposition. W e m e n tion that hammock-on-ears decomposition also draws from techniques in computational geometry and that an embedding of the graph does not need to be provided with the input. We a c hieve this decomposition in O(log n log log n) time using O(n + m) CREW PRAM processors, for an n-vertex, m-edge graph or digraph. The hammock-on-ears decomposition implies a general framework for solving graph problems e ciently. Its value is demonstrated by a v ariety o f applications on a signi cant class of (di)graphs, namely that of sparse (di)graphs. T h i s class consists of all (di)graphs which h a ve ã between 1 and (n), and includes planar graphs and graphs with genus o(n). We i m p r o ve previous bounds for certain instances of shortest paths and related problems, in this class of graphs. These problems include all pairs shortest paths, all pairs reachability, and detection of a negative cycle.