The aim of this study was to explore the availability, developmental appropriateness and utilization of play and learning materials in Finote Atsede preschool in Finote selam town. The researcher employed qualitative research approach and case study design. The study sampled one preschool using purposive sampling technique. Compressive sampling technique was used for selecting principal and teachers. Data were gathered through semi structured interview and observation checklist. One principal and five teachers were participated in the study. The findings of this study showed that indoor play and learning materials such as tactile play and learning materials (imaginative, creative, constructive, educational and other play and learning materials) and print media were available in the study preschool. However, these play and learning materials were not sufficient. Hence, mostly children learn without manipulating by themselves. Audio and audio-visual play and learning materials were not available except television. The findings revealed that fixed outdoor play and learning materials were available in some extent but they were insufficient. Moveable outdoor materials and playground were not available. The available indoor learning materials were developmentally appropriate due to materials concreteness, realness, surface of the materials, condition of materials, and weight of them. The outdoor play and learning materials were appropriate in some extent except swing`s belt and its surface, slide access ladders and fulcrum sea saw. Moreover, the findings showed that, teachers utilize indoor play and learning materials in some extent using songs, ticklers, educational play materials and print media. Children played in outdoor using materials but the role of the teacher was very low. The researcher concluded that there is an ineffective utilization of the available play and learning materials during classroom instruction. All stakeholders should take their own shares to make the school better. Key words: appropriateness, utilization, indoor, outdoor