The purpose of the study was to investigate the practices and challenges of modular/block teaching in higher education institutions of Ethiopia. A descriptive survey design was used with instructors and students. Questionnaires and semi-structured interviews were used to gather data and analysed quantitatively (descriptive and inferential statistics) and qualitatively (thematic analysis). The results showed variations in practice across different universities. It was found that modular/block teaching helps students to concentrate on one subject at a time but does not place emphasis on practical skills; this means that the theory and practice of the theory stay separate, which does not make learning credible. Additionally, it was found that due to the limited time given for one course, it was difficult to implement active learning. Generally, instructors and students faced challenges in the practice of modular/block teaching. Practically, the authors have made suggestions for the better implementation of modular/block teaching.