Several investigators have studied parenting style by relating it with variablesrnlike academic achievement, aggression, and other variables. No sufficientrnresearches have been done to relate parenting style to adolescent identityrnformation particularly in Ethiopia. The objectives of this research was torninvestigate the relationship between perceived parenting style and adolescentrnidentity formation, to find out the relationship between parental educational levelrnand adolescent identity formation, and to find out gender differences on identityrnformation. To meet these objectives, data were collected from a sample that wasrnselected using stratified random sampling method and analyzed by usingrnMANOVA, one way ANOVA, and other descriptive statistics for 200 adolescentrnstudents ranging from 17 to 21 years of age. In this investigation, the adolescentrnstudents rated their own parents on the two dimensions of parenting,rnwarmth/responsiveness and controIl demandingness and the data was used torncategorize their parents in one of the four parenting styles. In the same way thernadolescent students rated their own identity status. Based on these, thisrnresearch found out that the adolescents from authoritative parents form thernhighest level of identity (achievement and moratorium). On the other direction,rnadolescents from indulgent and neglectful parents form the lowest level ofrnidentity (diffusion). But, adolescents from authoritarian families were found tornhave a foreclosed identity status. On the other hand the finding of this studyrnshows that parental educational background has a significant effect on thernidentity formation of adolescents. But to the contrary, the third predictor variable,rngender of participants did not have any significant effect on the identity formationrnof adolescents.