Background: It is estimated that 85% of births in Ethiopia occur at home without skilled attendance though, 40% receive some level of antenatal care from a skilled provider for their most recent birth. In 2014, in Liben District, despite 84.7% of mothers attended antenatal clinic at least once, only 12.3% of them deliver in health institution.

Methods: A community based cross-sectional study was conducted from March 15 to April 6, 2015, among mothers who gave birth in the past 12 months in Liben District of Guji Zone, Oromia region.  Multistage sampling technique was used to select 649 of mothers for the study.

Results: Of all deliveries, only 167(25.9%) took place at health institutions (HIs). Attending at least primary school (AOR = 5.82, 95%CI: 2.64, 12.83), having sufficient knowledge on danger signs of pregnancy and labor (AOR = 12.99, 95%CI: 5.43, 31.06), having hospital in the vicinity(AOR = 4.08, 95%CI: 1.95, 8.55), health center in the vicinity (AOR = 2.71, 95%CI: 1.04,7.04), Husband/relative decided place of birth (AOR = 12.73, 95%CI: 5.05, 32.05) ), satisfied with service provided at health institution(AOR = 3.77, 95%CI: 1.63, 8.75) were factors independently associated with place of delivery whereas had no previous experience of delivery at HI (AOR = 0.06, 95%CI: 0.02, 0.21), middle wealth quintile (AOR = 0.27, 95%CI: 0.10, 0.73), high wealth quintile(AOR = 0.37, 95%CI: 0.14-0.98), Had no ANC visit (AOR = 0.54, 95%CI: 0.06,0.75), 1 to 3ANC visit(AOR = 0.27, 95%CI: 0.12,0.61) and previous obstetric complication (AOR = 0.003, 95%CI: 0.001, 0.031) were protective factors.

Conclusion Even though 97%of the mothers attended at least one Antenatal care, only 25.9% of them delivered at health institutions. Educational status of mothers, knowledge of mothers, economic status, level of health institution, perceived quality of service, use of Antenatal care, previous obstetric history, decision maker of place of birth and previous delivery at health institutions were factors associated with place of delivery. Promoting female education at least primary, as well as continued heath education and improving accessibility of health institutions by increasing the number of health institutions as well as infrastructure in pastoralist area is important.

Key words: place of delivery, pastoralist community, mothers