Background: The increase of medical laboratory test errors represents the increase of all defects within the process. An error can be any defect during the entire process, from ordering to reporting. It may have negative effects on patient care, by contributing to inappropriate treatment, an increase in lengths of hospital stay, and dissatisfaction with healthcare services. Therefore, this study aimed to determine factors affecting the quality of laboratory results through the entire process. Methods: A cross-sectional study was conducted at Hawassa University hospital from October 2018 to May 2019. Data were collected by using structured questionnaires and checklist and entered and analyzed using SPSS version 21. P-values less than 0.05 were considered statistically significant. Results: A total of 455 individuals participated in this study. During the actual observational assessment, 72.5% of laboratory professionals identify their patients correctly and 62.5% of them label the sample before collection. In multivariate logistic regression, labeling of sample before collection (AOR=1.357, 95% CI=1.09, 1.58, P-0.017), use of unmixed (AOR=4.364, 95% CI=1.950, 20.036, P-0.049) and hemolyzed blood for testing (AOR=1.403, 95% CI=1.096, 1.692 P-0.021) were associated with laboratory test errors. The clinical service providers who requested the test believed, lack of efficient laboratory service (P=0.005), unable to use manuals (P=0.025), and incorrect interpretation of reference booklets were associated with laboratory errors. Patient residence and frequency of first and second visits of the hospital were statistically associated with laboratory errors. Conclusion: The occurrence of laboratory errors in our study was demonstrated by the distribution pattern, the preanalytical, analytical, and post-analytical steps. But changes have occurred in the types and frequencies of errors in these phases of testing by laboratory professionals, clinicians, and patients in the current study. Therefore, the hospital administrations, laboratory professionals and clinicians should work harder and closer to solve the identified problems.