The commonly used pregnancy outcome indicators in developing countries arernmaternal mortality, abortion, perinatal, neonatal mortality, low birth weight andrnpreterm births. About eight million perinatal deaths are reported annually in the worldrnof which 40-60% is neonatal mortality and almost all are in developing countries.rnMany hospital based studies were conducted on those problems, while communityrnbased are very few. Therefore this community based cross sectional comparative studyrnwas conducted to assess the pregnancy outcome with emphasis on peri and neonatalrnmortality by delivery place and its associated factors in Dire Dawa town. The studyrnwas conducted between November 2002 and April 2003. A total of 1462 mothers whornhad children or had been pregnant for the last five years were participated in the study.rnPre tested standardized questionnaires were used to obtain information on sociorndemographic, obstetric history and the condition of the new born and mothers duringrnlabor and neonatal period.rnAnalyses were made using EP INFO 4.6 statistical package and SPSS version 10.rnIn the study the following findings were found:rnHigh perinatal mortality rate of 73/1000 live births with 38/1000 and 35/1000 livernbirths being at home and in health institutions respectively.rnHigh neonatal mortality rate of 47/1000 live births with 28/1000 and 19/1000 livernbirths at home and in health institutions respectively.rnMothers who had 2-4 parity had more risk to perinatal mortality than primi Pararnmothers. (AOR 5.15, 95%CI 1.54, 17.23) and mothers who had 5+ parity had more riskrnto perinatal mortality than primi Para mothers. (AOR 4.38, 95%CI 0.65, 29.40)rnvirnIn this study it is found that very small and small (motherâ€™s perceptions birth weight)rnneonates have more risk to neonatal mortality than neonates who had normal birthrnweight when they were born(AOR 3.61, 95%CI 1.75, 7.43) and also term babies hadrnless risk to perinatal and neonatal mortality than babies born preterm it is statisticallyrnsignificant when it is entered into logistic regression model(AOR 0.28, 95%CI 0.11,rn0.70) and (AOR 0.28, 95%CI 0.12, 0.63) respectively.rnMothers whose income were 601 birr per month. (AOR 4.64, 95%CI 1.53,14.01)rnand mothers whose income were 301-600 birr per month had more risk to neonatalrnmortality than mothers whose income were >601 birr per month. (AOR 4.29, 95%CIrn1.27, 14.50). Based on the above findings of the study the following recommendationsrnwere made.rnStrengthening of the MCH/FP care unit at each level and encourage mothers to use FPrnservices and improve quality of care , establishing and utilization of emergencyrnobstetric care services with special emphasis of neonatal care and give special attentionrnto empower of mothers and improve economic status and educational level of women