Background: Iodine deficiency disorder is a significant public health problem in Ethiopia. Fortification of salt with iodine has been the long term and effective preventive measure against iodine deficiency disorders. However, there is no other study has been conducted on utilization of adequately iodized salt in the study area. Hence, the need to undertake this study was to provide current information regarding the utilization of adequately iodized salt at household levels in the west part of Ethiopia. Method: A community based cross-sectional study was conducted among 768 households in the district from December 01 to 31, 2014. A multistage sampling was used to identify study unit. Data were collected using a pretested and structured questionnaire by a face-to-face interview technique and the households' salt was tested for its iodine content. Logistic regression analyses method was used to check associations and control confounding. Results: Only 8.7% of households had adequately iodized salt. Residence of respondents [AOR = 1.26, 95% CI = (1.12, 3.43)], using packed salt [AOR = 1.38, 95% CI = (1.27, 3.12)], not exposing salt to sunlight [AOR = 0.86, 95% CI = (0.67, 0.99)], storing salt in dry place AOR = 2.15, 95% CI = (1.82, 3.11] and storing salt in container with a lid [AOR = 1.45, 95% CI = (1.36, 2.71)] were significantly associated with utilization of adequately iodized salt. Conclusion: Utilization of adequately iodized salt at household level was very low in the study area. The finding of this study revealed that residence of study participants; using packed salt, not exposing salt to sunlight, storing salt in dry place and storing salt in container with a lid were significantly associated with availability of adequately iodized salt at household level. Thus, an organized effort should be made at all levels to improve the utilization of adequately iodized salt at household level.