Background: Despite the enormous expansion of HIV testing services (HTS), an estimated 40% of people with HIV infection remain undiagnosed. In Ethiopia, the current working UNAIDS spectrum estimate for PLHIV is 649,264, of the estimated PLHIV, only about 72% know their status. Methods: A facility based cross-sectional study design with internal comparison was conducted among randomly selected 346 people currently on ART in Woliso town. Data entry carried out by Epi Info™ version 7.2.3.1 and analyzed using SPSS version 21.0 statistical software for Windows.Results: Among 345 study participants, 333 (96.5%) with 95 % CI (94.5 - 98.3) of index cases have tested families. The odds of HIV testing were 7.22 times higher among those who disclosed their HIV status (AOR=7.22 95% CI: 1.45, 35.82) compared to those who did not disclosed. Those who have stayed <12 months on ART are 87% less likely to have tested families (AOR=0.13 95% CI: 0.03, 0.63) compared to those who stayed ≥12 months on ART. Conclusion: this study finding shows that higher proportions of families of index cases have been tested for HIV. It also shows that partner and family based index case HIV testing has significant association with HIV status disclosure of index cases and the length of the duration that the index cases stayed on ART. It is essential to sustain the platform of partner and family based index case HIV testing service through strengthening disclosure counselling and assisting HIV status disclosure in health facilities with fully trained provider and qualified health providers. It also suggests the need to focus on those who received ART for less than 12 months duration and communicate on the timing of HIV testing for HIV negative families with ongoing risk of acquiring HIV.