A cross-sectional study was carried out on randomly sampled 384 animals to assess the occurrence of small ruminant brucellosis and risk factors contributing for the zoonotic potential of the disease at Dallo-Manna and HarannaBulluk districts of Bale Zone. Rose Bengal plate test (RBPT) and complement fixation test (CFT) were used serially. All collected serum samples were subjected to RBPT first and then positive sera with RBPT were further tested for confirmation using CFT. Animal level prevalence of 6.5% and 2.9%, and flock level prevalence of 50% and 22% were recorded by RBPT and CFT respectively. Flock level prevalence at Dallo-Manna is 3.8-fold (95% OR CI = 1.17-12.19) than at Haranna-Bulluk (95% OR CI = 0.32-3.31) but no statistical significant difference (p>0.05). The Chi-square (χ2) statistical analysis indicated that age (χ2=6.18; p<0.05), parity (χ2=0.57; p<0.05), retained fetal membrane (χ2=35.5; p<0.001) and abortion history (χ2=45.1; p<0.001) were associated with Brucella sero-reactors in study areas. Small ruminant with history of retainedfetal membrane (OR=3, CI: 3.52- 27) and small ruminant with abortion history (OR=32, CI: 2.26-462.8) were also found significantly associated with seropostiveity. Questioner survey revealed only 30% of the respondents were aware of the small ruminant brucellosis. Most of them (84%) handle aborted materials with bare hand, 94% of the respondents mix sheep and goat at grazing field and watering point. Traditionally the habit of raw milk consumption is com- mon (100%). In conclusion, the result of this study demonstrated the presence of Brucella sero-reactors at moderate level in small ruminants and identified certain predictors of the infection. Therefore, based on the findings, authors suggest the need for further investigation on the disease-causing agent to take proactive control intervention measures. Meanwhile, actors need to work on raising public awareness to prevent the risk of public health hazard due toBrucella infection. Key words:- Brucellosis; CFT; RBPT; Small ruminant; Zoonosis