Background: Modern contraceptive use among adolescents is low despite the adverse effects of adolescent pregnancies and births. Understanding the predictors of modern contraceptive use in different settings is key to design effective context-specific interventions. We aimed to determine factors associated with modern contraceptives use among adolescents in rural and urban settings of Zambia. Methods: We analyzed data from 2018 Zambia demographic and health survey (ZDHS) focusing on adolescent girls aged 15–19 years. We conducted multilevel logistic regression using SPSS version 25 to examine rural-urban variations in factors associated with modern contraceptive utilization.Results: Overall, 12.0% (360/3000, 95% CI: 10.9-13.2) of adolescents in Zambia were using modern contraceptives. Use of modern contraceptives was higher in rural areas at 13.7% (230/1677, 95% CI: 12.1-15.3) compared to 9.8% (130/1323, 95% CI: 8.3-11.6) in urban areas. In the rural areas, having a child (aOR = 13.46; 95% CI 8.28 to 21.90), marriage (aOR = 1.97; 95% CI 1.25 to 3.08), older age (being 19 years) (aOR = 3.97; 95% CI 1.51 to 10.1) and belonging to the richest wealth quintile (aOR = 3.01; 95% CI 1.06 to 8.58) were positively associated with contraceptive utilization. In the urban areas, older age (being 19 years) (aOR = 4.80; 95% CI 1.55 to 14.84) and having a child (aOR = 18.52; 95% CI 9.50 to 36.14) were the only factors positively associated with modern contraceptive utilization.Conclusions: Having shown that some factors (age and having a child) were associated with modern contraceptive use in both rural and urban areas while some were only significant in rural areas (province, marital status and wealth index), indicates that the urban-rural differences in modern contraceptives use are both due to differences in the levels and nature or type of determinants. Therefore, interventions aiming to increase contraceptive utilization should be context specific.