Home environment occupies the first and the most important place in laying the foundation for rnthe child’s personality. It is here that the basic developmental phases such as physical, cognitive, rnsocial-emotional and language domains of development which strongly influence well-being rnthroughout life take place. The purpose of this study was to study home environment and rndimensions of development in preschool children in Debre Markos town. To achieve this rnobjective, the researcher used descriptive survey and correlation design, and both qualitative rnand quantitative approaches were employed. Purposive sampling and stratified simple random rnsampling were employed to select participants. The study was conducted on ten government rnpreschools found in Debre Markos town. The participants of the study were 294 parents and 10 rnpreschool teachers. Data was collected using questionnaire and interview. Structured rnquestionnaire items for 274 parents and semi-structured interview questions for 20 parents and rn10 teachers were also administered. Quantitative data obtained through questionnaire was rnanalyzed using mean, standard deviation, one-way ANOVA and regression. Whereas, qualitative rndata obtained through interview and open-ended questions was analyzed using translation and rnnarration. Findings showed that there was positive significant relationship between the rnindependent variables (Physical, Social, Academic Support, and Psychological Environments) rnand all dimensions of development. It also revealed that independent variables predicted rndependent variables. Based on the findings, there was direct relation between parents’ rneducational levels and child development. The findings also indicated that no significant rndifference found between male and female respondents and job type of participants in all rndimensions of development. Low economic income, lack of awareness on home environment and rnchild development, and parents’ mis treatment of children were the major home environment rnchallenges. The government bodies, parents, policy makers and preschool teachers should take rnthe responsibility and create awareness about the importance of home environment for the rndevelopment of children.rnKeywords: Home Environment, Child Development, Preschool Ch