The study examined the value addition practices and challenges of African yam bean (Sphenostylis stenocarpa) farmers in Enugu State of Nigeria. Multistage sampling technique was adopted in selecting a total of seventy two (72) respondents used for the study. Results revealed that all (100%) of the respondents processed African yam bean through sun drying, husking/hulling and preservation/storage while about 88.9% of the respondents processed the crop through frying/baking while 87.5% and 70.8% of the respondents indicated they were involved in winnowing and grinding. Lack of basic physical infrastructure (M=2.39), lack/poor technology on processing, preservation etc (2.35), difficulty in accessing loan (M=2.28) and lack of technology/innovation on production of the crop (M=2.28) were among the constraining factors to value addition in African yam bean. It is recommended that policy makers should work towards providing the necessary technology and basic infrastructure to farmers in order to increase their productivity, income and commercialization of this underutilized but important crop. Research efforts are also required to improve its agronomic characteristics and promote its cultivation.