This community-based cross-sectional study was carried out to assess the knowledge, attitude, and practice (KAP) of women 15-49 years old and their husbands on contraception in Gondar Town and the surrounding ten peasant associations. Peasant associations, households, and study subjects were selected randomly. Women 15-49 years old and husbands (if the woman is married) of the selected women were the study subjects. A pre-tested Amharic questionnaire was used for data collection. A total of 1379 (782 female and 597 male) individuals had responded for the study. Ninety nine percent of the total respondents believe that family planning is important. Most of them had information about family planning, 74.9% and 77.4% of the female and male respondents,respectively. About 72% of the female respondents and 36.6% of the male respondents knew more than one method of family planning. The overall modern contraceptive prevalence rate was 28.6%(35.5% urban and 11% rural). Modern Contraceptive prevalence among married women was 32.1%. Injectable contraceptives were used by 39.7% of the females and 69.6% of the males had positive attitude towards future use of contraceptives. Rural residents, women 15-19 years old, illiterates, divorced or widowed women, and women who earn low income were found at higher risk of not using modern contraceptives. The results of this study are discussed in the text. Efforts should continue to further increase the contraceptive coverage, especially by training adequate number of CBD agents to reach the rural community.