This study is carried out in the classroom and out of classroom at one of the school in the Amhara Regional State in Debre Markos. The purpose of the study is to investigate the social interaction and participation of hearing impaired students with their teachers and hearing peers in the regular classroom setting in different teaching learning activities. Out of classroom in extra-curricular activities, guidance and counseling, sport and play during break time are also investigated in this study. A qualitative approach with a case study design is used in the study with the intention of examining the phenomena under investigation in depth. The data was collected through observation, interview and informal talks. Four students with hearing impairment were purposefully selected on the bases of them being in inclusive classroom setting. Their teachers, hearing classmates, hearing impaired students (the focal group), parents of hearing impaired students, regular teachers, the head master and coordinator of the special unit were the informants of the interview. The finding of the study indicates that the hearing impaired students have poor interaction with their teachers and hearing peers. The participation of hearing impaired students inside the classroom as well as out of the classroom activities is insignificant. The concerned authorities that are responsible for students with disabilities do not have sufficient background knowledge in special needs education and they do not have the initiative to give special support for these students, from the school up to the level of Regional educational office. Hearing impaired students are considered as regular students by the school and the various educational offices. Teachers use regular teaching techniques.