Perinatal asphyxia is one of the most important causes of morbidity and mortality in neonates. Perinatal asphyxia occurs in association with maternal, fetal, and maternofetal factors. However, the magnitude and associated factors of perinatal asphyxia are not well studied in Tigray, Ethiopia. Therefore, our study is conducted to determine the prevalence and factors associated with perinatal asphyxia among neonates in general hospitals of Tigray. An observational hospital-based cross-sectional study was conducted in randomly selected general hospitals. A semistructured questionnaire was used to collect data from 421 randomly selected neonates with their mothers and medical records. The data was entered into epidata version 3.5 and exported to Statistical Package for Social Sciences (SPSS) version 20 for analysis. Finally, the presence of an association between a dependent variable and an independent variables has been declared at P-value ≤0.05, or adjusted odds ratio (AOR), 95% confidence interval (CI). Accordingly, the result of this study showed that the prevalence of perinatal asphyxia among the selected general hospitals was 22.1%. Neonates born with cesarean section are seven times more likely to have perinatal asphyxia than those who are born spontaneously through the vagina (AOR, 6.97; CI (2.87-16.93)). In addition, neonates who are born meconium stained are 8.55 times more likely to have perinatal asphyxia than those who had not stained with meconium (AOR, 8.55; CI (4.20-17.39)). Neonates who are weighed less than 2.5 kg are 12.75 times more likely to have perinatal asphyxia than those who are weighed 2.5-4 kg (AOR, 12.75; CI (4.05-40.08)). Prolonged duration of labour was also associated statistically with perinatal asphyxia (AOR, 3.33, CI (1.32-8.38)). In conclusion, the magnitude of perinatal asphyxia in general hospitals of Tigray remains high. Low birth weight, meconium-stained amniotic fluid, cesarean section, and prolonged maternal labour have been associated with perinatal asphyxia.