The main purpose of this study was to assess the magnitude of students’ dropout, to identifyrnmajor causes of the problem, and to identify measures taken to retain students’ dropoutrnDescriptive survey method was employed. Data were collected from 191 teachers and 15rnprincipals through questionnaires. Stratified random sampling was employed to select teachers’rnrespondents from both groups (male and female) and purposive sampling was applied to selectrnthe principals. Interviews were carried out with 10 supervisors and 15 parents.rnThe data obtained from the questionnaires were analyzed using different statistical tools likernfrequency, percentage and mean while the data obtained from the rosters of the pupils werernanalyzed using frequency and percentage.rnThe data from documentary analysis indicated that the rate of dropout in primary school of thernstudy area is low and its Trends also showed a decreasing tendency. The data also showed thatrnthe dropout problem was more serious among boys in the higher grade levels.rnThe analysis to identify the causes of the problem showed that the high rate of students’ dropoutrnin the study area is the result of in-school and out-school related factors. Among the in-schoolrnrelated factors, health problem, low expectation on future success, regular absenteeism, lack ofrnencouragement from teachers, school distance, were among the major causes. Regarding outschoolrnfactors, pupils involvement in income generating activities, parental lack of benefit fromrneducating the child, drought and/or famine, parental death, family breakdown, early marriage,rnpeer group influence were among the major identified factors. From this, therefore, it is concludedrnthat the dropout problems in the study area are results of economic, social, and cultural problemsrnand some in-school problems.rnDepending on the result of the findings, providing school feeding program, creating awareness onrnsociety on the value of education, providing counseling service for pupils, building satelliternschools, collaborative working among the school stake holders, recognizing and motivating thernbest achievers and continuous follow up and support in the schools of the study area arernforwarded as recommendations