The advance and popularity of the social media is increasing rapidly since the last few years.rnThese social media have been noted for some benefits. This is especially in the socializationrnprocess by giving access to communicate with old ji-iends, new friends' and family. SocialrnmedialFacebook has also been used as a source of news and as a vehicle for political andrnhumanitarian causes too. However, these benefits do not erase the foars associated with thernusage of these forms of media. These fears range ji-om privacy issues to waste of time,rnaddiction, Loss of educational achievements, eliminating interpersonal communication in itsrnmost original form and many others. However, the aforementioned social media impactsrnremains hazy when it comes to the case of Ethiopia, especially of the young students. Thisrnstudy, therefore, examines the usage and related impacts of Facebook, one of the mostrnpopular social media, among young University Undergraduate students in Ethiopia.rnAccordingly, using the uses and gratifications, media dependency and the network societyrntheories as a theoretical guide, the study investigated 'why for' and 'how' HE students in therncountry use Facebook. Obsen'ation and questionnaire has been used to collect data from 300rnrespondents studying at four different HE institutions. Hence, the finding shows that manyrnstudents in the HE institutions are heavy users of Facebook with many already tendingrntoward excessive usage and over dependency. Many undergraduates access their Facebookrnaccount several times a day and spend an average of 1-2 hours per day. Furthermore thernstudy provide consistent evidence that chatting and messaging as well as posting and viewingrnphotos as the most frequent activities of these undergraduate students on Facebook. They usernthe site mainly for personal and socialization purposes, but lower for academic purposes.rnHowever, the study, of course, does not find any relationship with academic achievement ofrnthe sample students.rnMoreover, Facebook has created an opportunity for students to easily communicate withrntheir existing friends, to enjoy leisure time, to date online and to keep them up-to-date.rnHowever, the finding also detected some sort of negative Facebook impacts including timernwastage, addiction and loss of privacy. Hence, the study recommends that students and anyrnuser should be carejid in their social media use and should exert targeted efforts to counterrnFacebook risks and thereby achieve maximum benefit the site offers.