Despite the progress made in reducing mortality in children, diarrhea continues to be a major cause of hospitalization and death of young children and has major economic consequences. Diarrhea is a condition for which high rate and misuse of drugs is common. The purpose of this study was to assess the management of diarrhea in children under five in health centers of Addis Ababa city administration, Ethiopia. Cross sectional study was conducted between September 1, 2014 and February 30/2015. An appropriate data extraction format was used to extract relevant information. Epi data was used for data entry and SPSS 20 was used for data analysis. A logistic regression was employed to examine the association between variables. A total of 803 children with diarrhea were enrolled. Of these 54.4 % had got inappropriate managements. At least one antimicrobial was prescribed to 588 (73.2%) of all children who attend the health centers. ORS and zinc were prescribed to 66.7% and 47.5 % respectively. Regarding appropriate management based on stool characteristics, children with bloody diarrhea 6.38 times more likely (AOR= 6.38(3.11, 13.63) to receive appropriate diarrhea management compared to children mucous diarrhea (p