Background. Self-medication, which is a form of self-care, is an important initial response to illness, and many illnesses can be successfully treated at this stage. It is practiced by a considerable proportion of the population and is affected by sociodemographic and economic factors. This study was conducted to assess the practice of self-medication and associated factors in Limmu Genet’s town households, Jimma Zone, Southwest Ethiopia. Methods and Materials. A community based cross-sectional study was done. Systematic sampling technique was used to select participants. Data was collected by face-to-face interviews by using structured questionnaires. After checking the completeness, missing values, and coding of questionnaires, data was tabulated and calculated on SPSS version 20.0. Finally data was presented in tables, graphs frequency, percentage, and cross-tabulation with different variables. Result. In this study, both self-medication and the prevalence of diseases among households were 78.1%. That constituted any kind of illness reported by participants. Conclusion. Self-medication practice is common among community members regardless of being community based health insurance members. Therefore, it needs pertinent health education on legal prescriptions and use of medicines as well as strengthening the access of community based insurance.