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BACKGROUND: The postpartum period is a critical period foraddressing widespread unmet needs in family planning and forreducing the risks of closely spaced pregnancies. However, manywomen do not realize that they are at risk for pregnancy during thisperiod. Therefore, the aim of this study was to assess utilization andassociated factors of modern contraceptives during extended post-partum period.METHODS: Institutional based cross-sectional study was conductedfrom March to April, 2015 in six health institutions among womenwho gave birth in the last 12 months prior to the study period inGondar Town, Northwest Ethiopia. A systematic random samplingtechnique was used to select the study participants. Data wereanalyzed using SPSS version 20. Bivariate and multivariate logisticregression models were fitted to identify the determinants ofpostpartum modern contraceptive use. Adjusted odds ratios with 95%confidence intervals were calculated, and p-values <0.05 wereconsidered to indicate statistical significance.RESULT: Of the total 404 participants, 45.8% mothers used moderncontraceptives during postpartum period. Injectable contraceptive wasthe most frequently used method. Menstruating [AOR =3.84, 95% CI:(2.33, 6.35)], resumption of sex [AOR= 3.17, 95% CI: (1.80, 5.58)],37-51 weeks of postpartum period [AOR= 2.48, 95% CI: (1.11, 5.55)],husband approval of contraceptive [AOR= 2.10, 95% CI: (1.16, 3.82)]and current knowledge on FP [AOR= 5.01, 95% CI: (2.23, 11.24)]were factors affecting contraceptive use in postpartum period.CONCLUSION: Utilization of modern contraceptive during thepostpartum period was significantly decreased placing women at riskfor a pregnancy in the extended postpartum period. Menstruating,resumption of sex, variation on postpartum period and husbandapproval of contraceptive were factors associated with contraceptiveuse. Strengthening FP counseling service at the ANC clinic andpostnatal care would improve contraceptive use during thepostpartum period.