Considerable research has documented the stigmatization of people with mental illnessesrnand its negative consequences. Recently it has been shown that stigma may also seriouslyrnaffect families and caregivers of psychiatric patients, but a few empirical researches havernaddressed this problem. In this study we examine the determinants of stigmatization ofrnfamilies of psychiatric patients 111 Butajira district. A total of 514 caregivers' ofrnindividuals who were diagnosed as suffering from schizophrenia and major affectiverndisorders in a community based survey were interviewed. The result reveals that 66.1 %rnof the fami lies of the psychiatric patients have reported that they are stigmatized due tornthe presence of psychiatric patient in the family. Statistical methods such as logisticrnregression, factor analysis and alternating logistic regression were applied and resultsrnfi'om logistic regression reveals that sex of patient, age of the informant, quality ofrnsubjects' cun'ent dwelling, economic position of patients' house-hold relative torncatchments ' area, and type of disease are significant factors that determine thernstigmatization of families, and results from factor analysis provides us the two majorrncomponents of stigma (threat from extemal environment and self feeling) explainingrn64.72% of total variance in all variables and finally alternating logistic regression wasrnused that provide odds ratio as a measure of association between these two factors.rnPerceiving stigmatization with respect to self feeling are 4.338 times that of with respectrnto threat from external environment.