Background: There are several complications of pregnancy that result in significant ongoing risk to the mother or to the fetus. For this conditions labor induction is an artificial termination of pregnancy utilized as a therapeutic option to decrease both maternal and neonatal morbidity and mortality. The process of labor induction is not risk free and not always have successful outcome but also may end up with failure of induction. Objective: The aim of this study was to assess outcome of labor induction and its associated factors among mothers managed at Bahir Dar City public health institutions, Northwest Ethiopia, 2021. Methods: An institution based cross-sectional study was conducted among mothers who were managed to labor ward for labor induction at Bahir Dar city public health institutions from March 1 to June 30, 2021. Four hundred thirteen selected mothers using systematic random sampling technique method from admitted mothers during the study period were included in the study. Data was collected using a structured interviewer administered questionnaire. Data was entered using Epi-Data Version 4.6 and analyzed using SPSS Version 25. Binary logistic regression model was used to find the factors affecting outcome of labor induction. Those variables having P-values less than 0.25 in the bivariable analysis were entered the multivariable analysis. Adjusted odds ratios with 95% CI were used to assess the strength and significance association between independent and outcome variables. Those variables having P-values less than 0.05 were considered as statistically significant factors. Result: The result of the study revealed that out of total case of labor induction, 325 (78.7%) with 95% CI (75, 83) of them achieved success labor induction. In logistic regression analysis favorable Bishop Score (AOR:4.455 (95% CI (2.392, 8.299)), Multipara (AOR:3.214 (95% CI(1.399,7.386)), Rural resident (AOR:3.833 (95%CI (1.866,7.872)), induction by oxytocin with cervical ripening (AOR: 2.905 (95% CI (1.645,5.132)) and BMI<25kg/m2 (AOR: 4.066 (95% CI: 1.828, 9.047)) were significantly associated with success of labor induction. Conclusion: The finding indicated that the prevalence of success induction in study area was about 78.7%. In this study the main determinant of success of labor induction were Bishop Score, Multiparity, Induction by oxytocin with cervical ripening, Rural residency and BMI. The result was higher than that of most areas in Ethiopia but still needs improvements of care with respect to the standard. Key words: Labor induction, Success of labor induction, Bishop score, oxytocin.