Background: Severe mental illness has negative consequences not only for the person suffering from it, but also for their caregiver’s quality of life and the community in which they reside. These impacts could be particularly visible in low and middle income countries, where the treatment gap for mental illnesses is particularly high. There is a dearth of evidence in Ethiopia. Objective: To assess Quality of life and its associated factors among caregivers of patients with severe mental illness at Felege Hiwot and Tibebe Ghion Compressive Specialized hospital, Bahir Dar, Northwest, Ethiopia, 2022. Methods: An institution-based cross-sectional study design was conducted at Felege Hiwot and Tibebe Ghion Compressive Specialized Hospitals from June 13 to July 13, 2022. A systematic random sample technique was utilized to select 469 study participants and world health organization quality of life Bref questionnaire was used to assess quality of life. The data were gathered using the epicollect5 software with a face-to-face interview method then exported to Statistical Package for Social Sciences Version 25. Simple and multiple linear regression analysis were conducted to identify associated factors of quality of life of variables that are statistically significant (P-value < 0.05) with B-Coefficients and 95% CI. Descriptive statistics was used to describe the outcome and predictor variables. Results: A total of 456 respondents participated with response rate of 97.2%. The mean score of overall quality of life were 46.9±19.7 (95% CI, 45.1, 48.8).In multiple regression Living in a rural area (B=-5.2, 95%CI;-8.9,-1.8), Being illiterate (B=-7.2, 95%CI,-10.6,-3.7), Having chronic medical illness(B=-5.2, 95%CI,-8.6, -1.7), Having probable cases of anxiety(B=-16.9,95%CI,-20.5,-13.3) Having probable cases of depression(B=-4.9,95%CI,-8.2,-1.7), and presence of perceived stigma(B=-7.9,95%CI,-11.2,-4.77) were significantly associated with quality of life. Conclusion and recommendations: The quality of life of caregivers of severe mental ill patients was found low. Living in rural area, being illiterate, having chronic medical illness, having probable cases of anxiety, depression, and being stigmatized were negatively associated with the quality of life. The findings indicate the necessity for health professionals, government and other concerned body better to pay more attention to caregiver’s quality of life. Key words: Caregivers, Ethiopia, Severe mental illness, Quality of life.