A cross sectional study was conducted at Assosa zone of Benishangul Gumuz, North West Ethiopia, to determine the prevalence of trypanosomosis in local breeds of sheep and goats. Blood sample from 384 randomly selected sheep and goats (177 from Assosa and 207 from Homosha districts) of different species, sex, age groups were examined by dark phase contrast buffy coat and thin smear examination for species identification of trypanosome. Among the animals examined during the study period, 10 (2.6%) were infected with trypanosomes. From this survey, Trypanosoma vivax was found to be the major cause of trypanosomosis (1.82%), followed by Trypanosoma congolense (0.52%) and Trypanosoma brucei (0.26%). There was no statical difference (p > 0.05) in infection between sex, species, and among age groups. Mean packed cell volume (PCV) of the parastemic animals was significantly lower than (P < 0.05) that of aparastemic animals. In attempt to identify the vector involved in transmition, tsetse flies group (Glossina morsitans submorsitans) and mechanical vectors of trypanosomosis that belonging to Tabanidae (Tabanus, Stomoxys and Haematopota) were captured in both districts at an altitude range of 1270 to 1507 m above sea level. The results of the prevalence of the disease in small ruminants and its vectors indicate that an effective management and control measures for the disease and transmitting vectors should be designed and implemented.