Stunting, decidedly prevalent in Ethiopia, is a reduction of linear growth associated with a series of adverse consequences. However, little is known about its determinants and factors associated in Ethiopia and elsewhere. Therefore, this study aimed to determine major undelying factors associated with risk of stunting among underfive children in Ethiopia. We used the 2016 Ethiopian Demographic and Heath Survey (EDHS) data and analysed a total of 11,023 children aged 0-59 months' data. Bivariate and multivariate logistic regression were fitted to identify key predictors and factors associated with stunting. Results show that, household and demographic factors such as maternal education (AOR: 0.67, 95% CI: 0.51, 0.89), wealth index (AOR: 0.65 (0.54, 0.78), sex of child (AOR: 0.78 (0.72, 0.85), possession of refrigerator (AOR: 0.57 (0.36, 0.89), possession of television and others like twin birth, house main floor material, types of cooking fuel were significantly association with stunting. Among dietary factors, early initiation of breast feeding; feeding powdered or fresh milk (AOR: 0.63 (0.52, 0.76); formula feeding (AOR: 0.41 (0.21, 0.81); consumption of organ meat(s) (AOR: 0.52 (0.32, 0.85) and beta-carotene rich fruits and vegetables were significantly associated lower odds of stunting. Antenatal care (ANC) follow-up, deworming during pregnancy (AOR : 0.11 (0.02, 0.74), institutional delivery (AOR : 0.64 (0.58, 0.71) and birth size (AOR: 5.1 (1.64, 15.88) were among the health care factors associated with stunting of under-five children. In conclusion, stunting is modulated by several household, dietary and healthcare factors, both at household and community-level. Likewise; improving household income, women empowerment, dietary diversity among mothers and children and improving maternal health care system are critical to mitigate under-five stunting more rapidly.