The objective of the study was to examine the effect of psychological contract operationalized in terms of transactional, relational and balance, transitional contracts on employee turnover intention in Ethio telecom Gondar city branches. The study employed quantitative research approach with explanatory research design due to its intent to find the effect of psychological contract on employee’s turnover intentions. From a total of 247 population a sample of 153 respondents were selected using simple random sampling technique. Data were collected through questionnaires and analyzed using SPSS version 26 after coding and cleaning to eliminate any flaws. Data was analyzed using descriptive statistics, correlation, and multiple linear regression analysis. The findings revealed that psychological contract (transactional and transitional) positively and (relational, balanced) negatively tend to contribute significantly in determining employee’s turnover intentions. The results of the regression analysis model indicated that the five independent variables (transactional contracts, relational contracts, balance contracts, transitional and ideological psychological contracts) explain about 70.9 percent of the variation in the level of employee turnover intentions. Transactional and transitional psychological contracts have positive and significant effect while the remaining independent variable has negative and significant effect on employee turnover. Based on the findings, the study recommends, the management body should improve mutual trust, employee involvement, secure the wellbeing of employee, communication with employees so that they understand the company's strategic direction, goals, and objectives. This has the potential to reduce skepticism and uncertainty so as to maximize the reduction of the employees’ turnover intention.