Introduction: Competence is the ability to perform a task with the desired result. Clinical experience is necessary to achieve the highest level of clinical competence after appropriate theoretical and practical training. It is estimated that many women and newborns die every year around the world due to a lack of qualified medical personnel. This is usually because women do not have access to competent health professionals. Objective: This study aimed to assess clinical practice competence and its associated factors among Midwifery and Nursing students at Bahir Dar Health Sciences Colleges, Northwest Ethiopia, 2022. Methods: Institutional based cross-sectional study was conducted from August 12-24/2022 among 403 Midwifery and Nursing students at Bahir Dar Health Sciences Colleges. Simple random sampling technique was applied to select study participants and the data were collected by using a self-administered questionnaire. Data template format were prepared and entered into Epi Data version 4.1 and exported to SPSS version 25 for analysis. In binary logistic regression of dependent and independent variables with P-value, ≤ 0.2 were included in multi-variable logistic regression and ≤ 0.05 were considered as significant in this study. Result: The prevalence of clinical practice competency among the study participant was 147(36.5%) with 95% CI (32.0, 41.0%). adequate clinical cases in the clinical practice placement [(AOR= 3.24, 95% CI 1.96, 5.35)], staff encouragement during the clinical practice preceptor show different procedures [(AOR=1.79, 95% CI 1.05, 3.03)], student’s confidence during conducting procedure [(AOR= 1.73, 95% CI 1.02, 2.94)] and the way of teachers taught the simulation is suitable to the way to learn [(AOR= 3.96, 95% CI 2.19,7.13)] were significantly associated with clinical practice competence. Conclusion and Recommendation: Generally, the results of this study revealed that the prevalence of clinical practice competence was higher compared to the previous studies conducted in Ethiopia. Encouraging students, selection of clinical site, enhancing confidence of students, preferred teaching and learning styles are important to improve the clinical competence of students. Keywords: Competence, Clinical practice competence