Background: Essential newborn care is important for the proper development and healthy life of a baby. Although 70% of infant deaths occur during the first month of life, the policy-makers and health professionals in developing countries, until recently, gave little attention for the new born care. But, the principles of essential newborn care are simple, requiring no expensive high technology equipment. Objective: the main aim of this study was to assess level of community based essential new born care practices and associated factors among rural women who gave birth in the last 12 months preceding the survey in Awabel District, Amhara, Ethiopia. Method: A community-based cross-sectional study was conducted in September and October 20013. Data were collected from randomly selected 570 women by interview. The collected data were entered into computer using Epi-Data version 3.1 and analyzed using SPSS version 16. Logestic regression was fitted to assess possible associations and the strength of association was measured using odds ratio with 95% CI. Results: the study revealed that the level of Essential New born Care practices was 23.1%. Educational status, (OR=7.02, 95%, CI=2.27, 21.74), immediate PNC visit, (OR=3.22, 95% CI = 1.18, 9.48), advise about Essential New born Care practices during monthly pregnant mothers group meeting (OR=4.77, 95%CI=1.11, 19.79) advise about birth preparedness during ANC visits (OR=9.05, 95% CI =2.76, 29.61) and presence of radio in the household (OR=7.91, 95% CI=2.64, 23.67) were found to have statistically significant association with essential new born care practices. Conclusion: The study identified low comprehensive practices of essential new born care in the study area. Community oriented promotion of essential new born care practices including women empowerment through education, promotion of suitable IEC materials and emphasizing and providing information and education to all pregnant women is recommended.