Insecticide-treated net is one of the main malaria control strategies reducing its incidence by half. This study measured proper utilization of insecticide-treated nets in the study area. To assess proper utilization of insecticide treated net and determinants among households of Zuway Dugda district, Ethiopia. Community based cross-sectional multistage study conducted using structured questionnaire via interview and observation. The collected data entered into EPI INFO Version-7 and analyzed using SPSS version 21 software. Variables having p < 0.2 in the bi variate logistic regression were entered into multi variable logistic regression analysis and finally p < 0.05 considered to declare association. Among study population 84.2% of 821 households had at least one ITNs, while only 18% used it the night proceeding the data collection day. Educational status, having separate sleeping room, frequency of using ITNs, ITNs ever been washed and shape preference of respondents were associated factors for utilization. Although ownership was moderate, only small proportion of household members slept at least under one ITN. Improving housing condition, when to wash ITNs and benefit of washing and education coverage for the community also needed.