Many Ethiopian children suffer from the burden of malnutrition. Studies show that half of the children are either stunted or underweight. The prevalence rate of child malnutrition in Ethiopia is higher than the average prevalence rate for Sub Saharan Africa countries for which the Demographic and Health Survey was conducted. The implication is that timely interventions are critical which require a good knowledge of the major causes of child malnutrition. This paper examines the role of maternal characteristics (education, relative household status, and employment) on nutritional status of Ethiopian children as measured by stunting and underweight. Separate estimations were performed for rural and urban areas. The result showed that mothers’ education level and their relative household status are important determinants of the nutritional status of children. In addition, household economic status and age of a child showed a strong association with nutritional status.