The major purpose of this study was to explore the vocabulary teaching techniques which early grade English teachers use and the problems which these teachers face in teaching vocabulary to early grade students with special focus to grades one and two in north Mecha woreda. A descriptive survey method was employed. Out of the 34 government primary schools functioning in north Mecha woreda in 2015E.C, 20 of them were randomly selected. In these schools, there are 58 English teachers teaching at grade 1 and 2 level and all of them were taken as samples of the study comprehensively. The data required for the study were collected from teachers using questionnaires, classroom observations and interview. Both quantitative and qualitative approaches were used to analyze the data. Descriptive statistics were used in analyzing quantitative data. The results of the study indicated that the use of translation, using pictures, using the real objects and using drawings are the most frequently employed techniques which early grade English teachers use in teaching vocabulary. Teaching by translating the meaning of the word into mother tongue was the predominantly used technique. The use of pictures technique comes next to the use of translation technique in rank order. In contrast to this, the other techniques: use of meaning definition, explaining, using mime and gesture, using synonymy, using antonyms, using vocabulary games, using song, the use of dictionary and asking for others were the most infrequently employed techniques by the early grade English teachers in the study area. This shows that teachers do not explore to use all the possible teaching techniques which would interest children and help them to understand meanings of words. The Problems which early grade English teachers face in teaching vocabulary were problems related to teachers, students and availability of teaching resources. Based on the findings, recommendations which may help to change using the old conventional techniques and improve their practices were forwarded.