In the process of Second Language Acquisition (SLA), classroom interaction takes an important place. Teachers need to apply appropriate classroom interaction to facilitate language learning in reality since interaction is in the heart of communication in an era of communicative language teaching. Therefore, the purpose of this study was conducted to assess teachers' application of classroom interaction on developing the students speaking skills in Tullu Sangota Primary school grade 8. Specifically, the study was intended to assess whether the teacher uses a variety of classroom interactions. In order to achieve the objectives of the study, a descriptive survey method was used and the data were gathered through questionnaires, classroom observation, and interview. Both open-ended and close-ended questionnaires were distributed to the sample students and semi-structured interview questions were employed with sample English teachers. Observation was also held based on checklist and chosen criteria in accordance with the objective of the study. To assess teachers' application of classroom interaction on developing students speaking skills, 100 sample students from grade 8 and 4 English teachers were taken for the study from Tullu Sangota Primary Schools. The collected data was analyzed using percentage and frequency. Based on the information gathered through the above instruments and its results and discussion, the findings of the study revealed that teachers rarely played their role to develop the students speaking skills in the classroom due to lack of awareness, having negative attitude toward classroom interaction, lack of simple materials to practice classroom interaction, low participation of the students in the class, and lack of access of teaching aids inhibits the teachers to apply classroom interaction. Based on the implications of the findings, recommendation was made to language teachers, students, Tullu Sangota Primary, Ministry of Education and concerned bodies. Finally, on the bases of the findings, it was recommended that in order to improve the students speaking skill: The students have to practice in classroom interaction to develop their speaking skill in the target language by actively participating in the classroom speaking. In addition, teachers also ought to play a prominent role to improve the students speaking skill by using an appropriate classroom interaction which give equal chance for the students to participate actively in the classroom interaction.