Although the problem of malnutrition affects the entire population, children are more vulnerable because it hinders their optimal physical growth, cognitive and socio-emotional development. undernutrition is associated with 45 percent of deaths of under 5 children. The solution for this serious public health issue is essential. From this perspective, this study aimed to identify the risk factor correlated with malnutrition and to examine the progression of malnutrition as child grows from his/her 1st to 15th birthday. The data for the study were taken from the Young Lives panel data for Ethiopia. To achieve objectives of the study, two malnutrition indicators (stunting and thinness) were studied. These indicators were examined independently due to their biological differences. Statistical models that handle the complexities of the panel data and transitional probability were employed. Marginal GEE Model, Generalized Mixed Effect Ordered Logistic Model and Markov Transitional Model used for analysis. The findings of the study revealed that sex of child, child age in month; mother education level, wealth index and number of drought animal own by household were found significant determinant factors of stunting. On the other hand, sex of child, child age in month, region, wealth index, number of drought animal own by household and number of small ruminate animal own by household were found significant determinant factor for thinness. Markova Transitional model analysis indicated that female children had the higher probability of recovering from both stunting and thinness than their male counterpart. To reduce child malnutrition, some curtail steps regards educating mothers and improving economic situation of population should be considered.