Background: None of the contraceptive methods are fully side-effect free. The number one reason women give for dissatisfaction with discontinuation hormonal contraception is side effects, such as mood disorder and depression that lead to discontinuation. The purpose of this tudy was to assess the association between contraceptive use and depression among female employeesin governmental institution in Sebeta town, Oromia regional state, central Ethiopia. Methods: Institutional based cross sectional study was conducted among female employees in governmental institutions found in Sebeta town, conducted from August 2015 to Jun 2016. Selfadministered questionnaire was used to collect data. The data were obtained through a standard questionnaire including PHQ-9 (Patient Health Questionnaire-9). The questionnaire was included socio demographic variable, social and economic factors, environmental variables. Data entry was being done using EPI-info version 7 and analysis was done using SPSS for windows version 20. Associations between determinants and outcome of interest (depression) was analyzed using multiple logistic regression, and was displayed using odds ratio with confidence intervals.Logistic regressions were used to assess the impact of different determinants for depression. Results:According to the PHQ-9, 34.10% women employees were identified by PHQ-9 as having had any form of depression diagnosis disorder. After adjusting confounding effects current use of contraceptive was not associated with depression, however marital status (AOR=2.31,95%CI (1.00, 5.33)), ever use of injectable(AOR=1.59,95%CI(1.02, 2.49)), Exposure of violence (AOR=1.98,95%CI(1.20, 3.26)), sufficiency of income (AOR=2.11,95% CI (1.26, 3.53)), total family size(AOR=1.50, 95%CI(1.02, 2.20)), problems of everyday living food cost(AOR=3.47,95%CI(1.56,7.67)) and problems of everyday living house furniture cost (AOR=1.56,95% CI (1.01, 2.39)) were statistical significant. Conclusion; In this study, there is no association between current use of contraception and depression. Marital status, ever use of injectable, exposure of violence, income covering living expenses, total family size, problems of everyday living food cost and problems of everyday living house furniture cost were the determinants ofdepression; therefore, women should be aware of using hormonal contraceptive with out fearing on its side effect related to depression. Key words: Contraceptive methods and Depression.