This study investigated the effects of problem-solving teaching method on elementary school students' physics achievement at Dudmgne elementary school, Woreta Administrative Town, South Gondar Zone. In this investigation an experimental research procedure was used. Along with this, a sample of sixty students was drawn from a total of three hundred seventy eight students using lottery method of sampling technique. Physics achievement test (-pre-test and post­ test) covering the unit "Introduction to Electronics" was used as measuring instrument. Then, based on the pre-test scores, mixed ability groups such as fifteen high and fifteen low scoring 30 students each were assigned as experimental (13Fandl 7 M) and control(l 5 and] 5M) groups using lottery method of sampling technique. Students in the experimental group were taught using Problem solving teaching method while those in the control group were instructed with lecture teaching method. Both groups were taught the unit "Introduction to electronics" for a month, 40 minutes per period, totally ten periods each. The post-test constructed by the writer in the sample unit taught was administrated to both groups immediately after the treatment was over. The research data were collected from both groups through physics achievement test PAT pre-test- before and post-test after treatment and video observations at the time of treatment. Independent samples t-test was applied to check the meaningful differences between the averages accordingly. Finally, the results of the study revealed that problem solving teaching method was more effective in teaching physics as compared with lecture method at elementary school level.