Social interaction serves as a key and integral part of any participant’s experience in physical education and can either have a profound overall positive or negative impact, thus contributing to the experience for students. The main purposes of this study were to investigate the contribution of physical education to students’ social interaction in some selected West Gojjam Zone general secondary schools. The researcher sampled 397 students according to the number of students by the formula of sample size determination. 96 teachers and 31 principals were used by the comprehensive sampling technique. A total of 524 respondents participated as the source of data. A descriptive survey research design was used for both qualitative and quantitative research analysis methods. On the other hand, questionnaires, observations, and interviews are used to gather relevant data from the sample of the study. At the end, descriptive statistics analyses are implemented by SPSS version 23software. Quantitatively the analysis is made using tables and qualitatively using words. The result shows that the current level of students’ social interaction in the school is poor. The motivation of physical education teachers and the support of school principals for the effective development of students’ social interaction were poor. The major identified problems were in the adequacy of teaching resources and facilities, problems of large class size, the physical structure of the school and sports playgrounds were not comfortable. Finally, we recommend that all stake holders in the school have to work together to solve the problems of students' social interaction in teaching physical education in general secondary schools.