Literacy abilities are crucial for economic progress and community welfare, with higher education recognizing them as vital for problem-solving, critical thinking, continuous learning, and effective functioning for both experienced educators and the new student cohorts. The study examined the interplay between organizational learning and departmental performance, and its implications for changes in Ethiopian Public Research Universities. The researchers used the framework that focuses on seven distinct dimensions of organization learning (OL) namely continuous learning, inquiry and dialogue, collective and collaborative efforts of organizational members, empowerment, embedded system, system connection and strategic leadership and departmental performance (DP) which consists of three dimensions teaching-learning, research and community services. The researchers employed embedded mixed methods design (QUAN + qual) to examine the interplay between organizational learning (OL) and departmental performance (DP). The researchers selected four public research universities using simple random sampling technique. Then, they selected 1,176 respondents (969 instructors and 207 department heads) from target population using simple random sampling technique. The researchers adapted standardized questionnaires and collected quantitative data using questionnaires, and analyzed using descriptive statistics (mean & standard deviation), and inferential statistics (multiple correlations, multiple regressions & structural equation modeling). Qualitative data was collected using semistructured interview from 14 key informants who were selected using the purposive sampling technique based on their rich lived experiences of teaching-learning, research and leadership in higher education institutions. The qualitative data was thematically analyzed. The finding of the study showed that the structural equation model fit to the data. It was also found that the correlations between the different dimensions of organizational learning practices and departmental performance ranged between low and moderate. There were positive significant and moderate correlations between each dimension of organizational learning and departmental performance. The organizational dimensions accounted the largest cumulative variance to departmental performance dimensions; research (R[superscript 2] = 40.70%; [beta] = 0.638, p < 0.001); community service (R[superscript 2] = 33.50%; [beta] = 0.579, p < 0.001) and teaching-learning (R[superscript 2] = 24.60%; [beta] = 0.496, p < 0.001). The study showed that the presence of formal and informal organizational learning cultures in universities enhance departmental performances. Therefore, the Ethiopian public research universities should create effective organizational learning systems to improve departmental performances.