This study aimed at exploring undergraduate students‟ perceptions and engagement with their teacher‟s oral corrective feedback in an EFL spoken classroom at Bahir Dar University. Guided by a pragmatist view of research, this study employed mixed-methods case study design to collect qualitative and quantitative data from a class of participants (N=11) taking the course “Spoken English I” in their second semester. To this end, audio-recorded classroom observation, close-ended questionnaire, and students‟ interview were utilized. The data were analyzed using descriptive statistics (questionnaire) and thematic analysis (interview and observation transcripts). The findings demonstrated the teacher‟s utilization of various OCF types (predominantly recasts) following students‟ spoken errors in the classroom. Regarding student engagement, the participants not only listened to and processed the feedback but also tried to refine their speech. Emotionally, most of them felt encouraged and please with the OCF they received while some reported experiencing frustration following the feedback. While recasts achieved the highest student repair rate (81.8%), followed by metalinguistic feedback (66.7%), explicit feedback and repetition did not trigger any student repair. As for the errors, the findings revealed that grammar errors had the highest repair rate (90.9%), whereas lexical errors were the least repaired (14.3%). Interestingly, the use of double feedback moves and non-verbal signals were parts of the OCF practice. The participants largely perceived OCF as an essential tool to improve their grammatical accuracy and oral performance during speaking despite some negative affective-filters such as anxiety, which deterred participation in the feedback. Finally, the study outlined practical and pedagogical implications, along with specific recommendations focused on enhancing teachers‟ classroom practice, refining teacher-training programs, and suggesting avenues for future research.