The study aimed to investigate the challenges facing grade five EFL teachers in mixed ability classes and the strategies that they follow to overcome those challenges. It focused on grade five as it represents a transition from cycle one to cycle two school. The students face difficulties in the school environment, the curriculum and the assessment system. In addition, students differ in their abilities and levels. The teachers face difficulties to balance between students' needs and what is required in the syllabus. A questionnaire was used to collect the data required to answer the research questions. A t-test was used for data analysis. The results showed that both male and female teachers face challenges in mixed-ability classes. Those challenges were related to teaching and learning, classroom management, motivation and coursebooks and materials The researcher also investigated different strategies which were related to students' needs, teaching and learning, classroom management, motivation and interest, materials and evaluation. There were no significant differences between male and female teachers in following various strategies except strategies related to motivation. Moreover, no significant differences were found between novice and experienced teachers in applying strategies. Recommendations were given based on the findings of the study.