Forced, by rapid increases in urban population, municipal administrations in Ethiopia are wrestling with an ever rising problem of solid waste management. In the emerging Legetafo-Legedadi town open and indiscriminate dumping of solid waste is rampant and piles of decaying growing in the garbage remain uncollected. The study focused on an analysis and discussion of the challenges of solid waste around the open dumpsite and environmental, economic, and health impacts arising from the haphazard and poor waste management. In doing investigation, descriptive research design was followed. Using purposive sampling technique, key informants were selected. Besides, participants were selected using simple random sampling technique. The data gathering instruments employed in the study were, interview, key informant interviews, focus group discussion, and site observation. The findings of the study revealed that existing solid waste collection practice could not cope with the increasing volume of solid waste in the town. Illegal dumping is increasing polluting the roadsides, open spaces, and temporary collection sites with potential health menace to the residents of the town Accordingly, 59 percent (216) of the respondents stated that open dumpsite posed public health risks; 18.9 percent (69) said that there was uncontrolled dumping even at the dumpsite, and 12.3 percent (45) argued that the open dumpsite contaminated groundwater. Apparently, the residents are facing health and environmental challenges due to poor management of solid wastes. With this regards, it is recommended that the town administration should apply integrated solid waste management system.