Background: Even though a reduction in neonatal mortality is needed to achieve Sustainable Development Goals 2030, but neonatal mortality is still high in Ethiopia. Induction of labor is still an independent factor for different adverse neonatal outcomes. Researches figure out that induction of labor was a significant factor for neonatal morbidity and mortality, but studiesthat addressed or estimated those adverse neonatal outcomes are limited and specifically, little study was done in the study area.So, this study provides healthcare providers with up-todate and evidence-based recommendations in the intrapartum care. Objectives: To compareadverse neonatal outcomes of induced and spontaneous labor and its associated factors among women who gave birthat public hospitals of Awi zone,Ethiopia 2022 Methods: A comparative cross-sectional study was conducted at Awi zone public hospitals from May 1 to June 30/2022. A systematic random sampling was employed to select 788 (260 induced and 528spontaneous) women. The collected data were analyzed using SPSS software version 26. A binary logistic regression wasused to assess the level of association and aP-value <0.05 was used to declare the statistical significance at 95% confidence interval. Result: The adverse neonatal outcomes among induced women andwomen who gave birth through the spontaneous onset of labor was (41.1%) and (10.3%) respectively. The odds of adverse neonatal outcomes in inducedlabor were1.89 times higher compared to spontaneous labor (AOR=1.89, 95% CI: 1.108, 3.222 with p-value=0.019).No education (AOR=2.001, 95% CI: 1.564, 6.444), chronic disease (AOR =3.988, 95% CI: 1.866, 8.524), male involvement (AOR=2.228, 95% CI: 1.225, 4.055), preterm gestation (AOR=25.836, 95% CI: 8.74, 76.374), operative delivery [instrumental (AOR=8.58, 95% CI: 4.629, 15.901), CS (AOR=4.167, 95% CI: 1.939, 8.952)] and labor complication (AOR= 5.156 , 95% CI: 2.895, 9.181) were significantly associated factors with adverse neonatal outcomes. Conclusion and recommendation: Adverse neonatal outcomes in the study area were higher. Composite adverse neonatal outcomes were significantly higher in inducedlaborcompared to spontaneous labor. Community engaged education, promotion of preconception risk factors, and early detection and management of complications of labor are recommended. Key words: Adverse neonatal outcomes, induced labor, spontaneous labor, Ethiopi