This study aimed to examine and analyze the mediating effect of job satisfaction between job insecurity and turnover intention. The researcher used cross sectional research design and quantitative research approach in order to meet the objective/aims of the study. All of the 39 people who work for the Housing construction project of Defense Construction Enterprise (DCE) Bahir Dar branch participated in this study. A total of 39 questionnaires were used for this study and the data were analyzed using descriptive and inferential statistics using SPSS version 23.0 and path analysis through Amos graphic. Pearson Correlation analysis shows that there was statistically significant positive relationship between job insecurity and turnover intention, statistically significant negative relationship between job insecurity and job satisfaction, and statistically significant negative relationship between job satisfaction and turnover intention. Relatively, job satisfaction had less negative correlation with employees’ turnover intention. The result of liner regression Analysis revealed that 49 % of the variation of employees’ turnover intention can be predicted by the independent variables job insecurity with appended indirect effect. In addition, the mediator job satisfaction had insignificant contribution to employees’ turnover intention at 95% confidence level. The results of this study prove that: (1) Job insecurity positively and significantly affected turnover intention of employees in DCE Bahir Dar branch projects in model 1; (2) job insecurity negatively and significantly affected job satisfaction of employees in DCE Bahir Dar branch projects in model 2; (3) Job satisfaction negatively and significantly affected turnover intention of employees in DCE Bahir Dar branch projects in model 3; and (4) Job satisfaction is not able to mediate the relationship between job insecurity and turnover intention of employees in DCE Bahir Dar branch projects in model 4.and finally the researcher has recommended that other factors should to be reviewed which affects turnover intention in the DCE Bahir Dar branch projects that are not covered in this study that may be employees‟ job satisfaction itself, job motivation, transportation, working time, unpayable over time, and etc. as this research work covers only employees‟ job insecurity as an independent variable on employees turnover intention as a dependent variable.