Background: Parental satisfaction reveals the balance and harmony between the parent expectations of ideal care to be given and the observation of the actual care given for their neonate. Parental dissatisfaction has resulted failed in treatment plans, increased neonatal readmissions, increased anxiety among parents and lack of confidence in health institutions.In Ethiopia,there are few scientific evidences on the evaluation of neonatal care unit service satisfaction . Objective: To assess parental satisfaction and associated factors among parents with neonates admitted to the Neonatal intensive care unit of Bahir Dar city public referral hospitals . Method: An institution based cross sectional study was conducted from February 28/2021 to Aprill 30/2021, among 411 systematicaly selected participants who had a neonate admitted to neonatal intensive care unit. The data were collected by trained data collectors using a pretested structured interviewer administered questionnaire and chart review.Then, the collected data were entered using Epi data version 3.1 and then exported & analyzed using Stata version 14. Bivariable and multivariable ordinal logistic regressions were used to identify factors associated with parental satisfaction.Statistical significance was declared at p-value less 0.05. Result: This study finding revealed that over all, 47.8% of parents were satisfied by the services their neonate received in the hospitals. Educational levels of degree and above [AOR= 0.36; 95% CI: (0.16, 0.82)], urban residence [AOR= 0.58; 95% CI: (0.33, 0.98)], more than once previous hospitalization [AOR= 0.31; 95% CI: (0.14, 0.67)], parental age group of 36-45 years [AOR= 0.43; 95% CI: (0.2, 0.92)], duration of hospital stay 15-21 days [AOR= 0.08; 95% CI: (0.03, 0.22)] , private employee [AOR= 0.38; 95% CI: (0.17, 0.86) & family income in Ethiopian birr 5001-10000 [AOR=2.5; 95% CI: (1.12, 5.42)] are factors associated with parental satisfaction. Conclusion In conclusion, less than half of the parents were satisfied with the neonatal care service in this study setting. A great opportunity is there to improve parental satisfaction if the service quality is improved around the time of parent and health care provider interaction and facility services. Key words: parental satisfaction, neonatal intensive care unit ,Bahir Dar, Ethiopia