Background: It is only recently that voluntary counseling and testing services have beenrnconsidered important as an entry point for prevention and care interventions forrnHIV/AIDS. Access to voluntary counseling and testing services, however, remainsrnlimited and the demand for the service is often low.rnObjective: The aim of this study was to assess magnitude of utilization of voluntaryrncounseling and testing for HIV/AIDS and to identify factors and barriers that affect VCTrnutilization among government and non-government employees in Butajira town, SNNPR.rnMethods: This was a cross-sectional study that was conducted among 347 governmentrnand 349 non-government employee in Butajira town, Gurage Zone, southern Ethiopia.rnThis study used two stage sampling, the first stage was cluster sampling to selectrnrandomly seven sectors from government organizations, and another seven blocks fromrnnon-governmental organizations, taking sectors and blocks as a sampling unit forrngovernment and non-government organizations, respectively. The study used arnstandardized and pretested questionnaire for the quantitative study and four focus grouprndiscussions for the qualitative study. Data was analyzed by binary analysis using thernlogistic regression in SPSS.rnResults: A total of 736 study participants were eligible in this study, 696 were willing tornparticipate in the study, among these 347 (49.9%) were government employees and 349rn(50.1%) were non-government employees. The mean age of the respondents was 31.2rnyears. The magnitude of VCT utilization in the study participants was 37.9% with a 95%rnCI (34.3% and 41.5%). Voluntary counseling test utilization was higher to statisticallyrnsignificant level among female participants, higher educational status, marriedrnindividuals and individuals having a monthly income of 1000 birr or more than theirrnreferents.rnConclusion: The current study demonstrated that VCT utilization is low in Butajira townrnalthough it is higher than the reported prevalence for urban areas n the country.rnThe result of this study indicates that VCT users are mainly government employees andrnfemales.