Background: -Ensuring institutional delivery for each child birth is the most critical intervention in reducing maternal and neonatal mortality and morbidity. In Ethiopia the proportions of births delivered in health institutions is very low and even for women who have access to the services. The proportion of birth occurring in health facilities is only 16%. Objective: -To investigate intention of pregnant women to use institutional delivery and associated factors from March to April 2016. Methods: -A Community based cross-sectional study was conducted in Wollaita Soddo town. Theory of Planned Behavior was employed to evaluate intention of pregnant women for delivery utilization. Data was collected by using pre-tested, structured questionnaire. The data collected was checked for its completeness and consistency, coded, entered and cleaned by using Epi data 3.5.1 and exported to SPSS version 20.00 statistical software. Data analysis was done for proximal and distal variables differently based on their presence in the model. Result:-A total of 326 pregnant women who had ANC follow up were included in the study. On multiple logistic regression husband's occupational status and informed about delivery places were statistically significantly associated with intention to use institutional delivery among ANC attendants from distal variables and Attitude and subjective norms were statistically significantly associated with intention from proximal variables. The odds of intention to use institutional delivery among pregnant women who were informed about delivery places was 2.658 times more likely than those who were not informed about delivery places AOR=2.658(1.357, 5.207) at P-value 0.005.Those women whose husbands' were employed were 2.2 times more likely to intend to use institutional delivery than women whose husbands' were not employed (AOR=2.2(1.308, 3.7) at P-value 0.003. Conclusion:-The study concluded that the intention of giving birth at health institution increased with positive attitude towards institutional delivery, being informed by health professionals about the place of delivery and husband's occupational status being employed and decreased with subjective norms.