Introduction: Globally sepsis remains one of the major causes of morbidity and mortality in neonates, in spite of recent advances in health care units. Neonatal mortality is a major public health issue, 5.3 million neonates died in 2018 worldwide. Of which, sub-Saharan countries alone contributed half of world neonatal death, neonatal sepsis accounts one-fourth (25%). Likewise, Ethiopia is with highest neonatal deaths (30 /1000 live births). Although maternity care utilization and quality of essential newborn care in Ethiopia are improving neonatal sepsis and neonatal mortality remain as problem. Objective: To assess the prevalence and associated factors of neonatal sepsis among neonates admitted in neonatal intensive care units of Bahir Dar town public hospitals, North West Ethiopia, 2020. Methods: - Facility based cross-sectional study design was conducted among 338 neonates who were admitted in neonatal intensive care units from June 28, 2019 to June 27, 2020. Data was collected via structured checklist. Patient’s chart was selected using simple random sampling technique. Data was cleaned, coded and entered into Epi-data and exported to Statical package for social science version 23 for farther analysis. Bivariable and multivariable analysis was performed. P-value less than 0.05 was used to declare as statically significant and adjusted Odds ratios were used to measure the strength of association. Results: - The prevalence of neonatal sepsis was 47.63%. Premature rapture of membrane (AOR=2.26; 95% CI: 1.22-4.16), assisted vaginal delivery (AOR=3.53; 95% CI: 1.65-7.58), low birth weight (AOR= 2.10; 95%CI: 1.16-3.78), foul smelling liquor (AOR=5.7; 95%CI: 2.87-11.32), low, APGAR score at (AOR=2.20; 95%CI: 1.60-4.59)), and prematurity (AOR=2.20; 95% CI: 1.23-3.88) were factors that showed significant association with neonatal sepsis. Conclusion: - Being low birth weight, being low APGAR score, having history of foul-smelling liquor, being premature and assisted vaginal delivery were factors associated with neonatal sepsis. Key words: Neonate, Sepsis, Ethiopia.