Background: Due to low maternal healthcare utilization, many numbers of women die each year rnwithin the first hours, days and weeks after childbirth. To avert this, one of the eight Millennium rnDevelopment Goals called improving maternal health is widely applied through out the world rnespecially in developing countries which have low coverage of maternal services due to several rnfactors. Therefore, the factors at different levels affecting the use of these services need to be rnclearly understood by assessing factors which affect the utilization of PNC services. rnMethods: A community based cross sectional study design method was used in Funeteselam rntown from November to May 2013 by using systematic sampling techniques. Data was first rncleaned, edited, coded and entered into computer via epi Info version-3.5.1 and it was analyzed rnusing SPSS version -16, and logistic regression used to assess the association of variables. rnResult: The woman's own educational status, marietal status, occupation status, obstetric history, rnplan to utilize PNC services, long waiting time and decision making problem were significantly rnassociated with the utilization of PNC. As a result of such factors especially lack of awareness, rnand self decision, proportion of women who had received PNC after delivery was (20.2%). rnConclusion and recommendations: the findings of this study showed that postnatal care rnservices utilization is low in the study area due to no/little knowledge, being healthy, being rnbusy, long waiting time, far from house, decision making dynamics, and with out reason. This rncalls service providers, administrative organs, and health-policy makers to design short and long rnterm strategies for awareness-raising programmes and educating the community about the rnbenefit of PNC services for both mothers and infants at grassroots level.