In Ethiopia, the false ceiling is done using plaster of Paris (POP), timber and cardboard sheet. POP and timber false ceiling materials are not affordable to the middle- and lower-income group people due to its high cost. Hence, this research objective is to develop a false ceiling panel by using locally available materials such as cement, pumice, metal square mesh, and edible oil as an air-entraining agent. The particle distribution of aggregate used is in the ratio of 70:30. The aggregate retained on sieve size 2.36 mm - 300 μm and passing through finer particles on 300 μm was used to prepare the panels. Total nine slabs 250×250×30 mm and three beams of 250×250×30 mm was casted to study the properties of flexural strength, water absorption, density, fire resistance, and screwing effect. To enhance the production of panels and meets its demands to the public, panels were tested for 14 days instead of 28 days as per the standard requirement. According to the results obtained, it is found that the densities of the panels vary between 1050 kg/m3 and 1070 kg/m3, the percentage of water absorption ranges between 14.6 and 18.73%, and the flexural strength is zero are obtained respectively. The samples are found to be better at fire resistance for 1 hours in an uncontrolled temperature. In addition, the screwing samples did not show any cracking during testing. As the panels are good at fire resistance, they can also be installed in kitchens at residential, hotels, commercial and other public buildings.