SMEs play a crucial role in driving Afghanistan's economy, as they possess the ability to generate increased employment opportunities, enhance local technology, and establish a foundation for sustainable industrialization and corporate sectors in the future. The aim of this research is to identify the primary obstacles faced by SMEs operating in Nangarhar province. The research took place in Nangarhar, where data was collected using the methods of observation and focus group discussions. Purposeful sampling techniques were employed to select participants, and face-to-face interactions were conducted during the focus group discussions and observations. The aim was to gain an understanding of the primary challenges faced by SMEs in Nangarhar. The study identified several key constraints to the development of SMEs. Primary among these is the poor state of infrastructure and unreliable electricity. Additionally, the challenges encompass limited access to finance, political and security instability, restricted market access, skills and capacity gaps, inadequate access to technology and innovation, insufficient business support services, weak supply chain, lack of proper business knowledge and planning, intense competition in the domestic market, high costs of raw materials and equipment, and insufficient subsidies. These constraints, play significant roles in hindering the growth of SMEs.