Agent Oriented Software Engineering (AOSE) is an exciting and promising approach for solving complex and real world problems. It is crucial for industrial and commercial application as these systems are required to operate in increasingly complex, open, dynamic, unpredictable and inherently high interactive environments. In this paper, the author will outline the concept of agent oriented software engineering and explain the need of AOSE as a programming paradigm. The paper also presents a discussion on challenges of developing multi-agent systems and how agent oriented software engineering can be applied to solve these challenges.