The Construction sector in Ethiopia usually encounters Project overruns, inability to meet project quality, ineffective procurement methods. . The research aims to explore the effectiveness of Modern Methods of construction in terms of cost, time and improved quality. It is descriptive and qualitative in kind. Qualitative approach was Chosen because, there are fewer projects that have used MMC, MMC is new to Ethiopian building sector and to explore the experiences of MMC in-depth. Interview was used as an instrument of data collection. The research analysis shows how effective a MMC is on the project time, cost, quality, and customer satisfaction parameters of construction projects of selected residential buildings. Qualitative analysis is used to describe the benefits of implementing MMC, and its effectiveness on time, cost, and improved quality parameters of the contractors’ projects. The finding of the research elaborates that MMC is more effective on internal factors time, cost, and quality of the contractors’ construction projects.