The purpose of this study was to investigation the magnitude of educational wastage of secondary schools in gurage Zone. Attempts are also made to identify the major factors that aggravating to educational wastage and suggest possible strategies to alleviate them. To this end, descriptive survey method was employed to reveal the current situation of high rate of grade repetition and drop-out (educational wastage). The data regarding enrolment, repetition and drop-outs were obtained from gurage Zone educational department and sample schoolâ€™s document. The study included five woredas, 280 students, 165 teachers, and 9 principals of sample schools. Sample woredas were selected using purposive sampling technique to give more focus to rural schools. Simple random sampling technique was applied to select teachers and students (drop-outs and repeaters). Principals were selected using availability sampling technique. The variables considered in the study are students-related, teacher-related, school-related as well as administrative/institutional, socio-economic and socio-cultural constraints. The data gathered through questionnaire, was analyzed using SPSS software to find frequency, mean, t-test value, and Chi-square value. To determine the magnitude of educational wastage and to identify the gender and grade level that was severely affected by wastage, five consecutive yearsâ€™ studentsâ€™ document (enrolment, repetition and drop-out) was used. Wastage rate was calculated and indicated for each grade level according to the past five years data. The findings have indicated that high repetition rate was registered at grade twelve, high drop-out rate was registered at grade nine and high over-all wastage rate was registered at grade twelve. It was also identified that rate of wastage of secondary education was higher in second cycle secondary school (Grade11-12) and among girls than boys. Finally the weighted mean scores, over-all wastage average and t-test results revealed that students related, school related and socio-economic background variables were found significant aggravators behind low internal efficiency of secondary schools in Gurage Zone. The findings therefore suggest that improving these variables may take a considerable change in alleviating wastage of secondary education. Based on these findings and conclusion drawn, it was recommended that the measures regarding creating awareness for parents, nearby school building, motivating teachers, creating conducive school environment and improving school facilities and services should be taken to minimize the educational wastage of secondary schools in the study area.