A cross sectional study was conducted from November 2016 to May 2017 to identify the major causes of organ condemnation in cattle slaughtered at Bahir Dar municipal abattoir and to estimate the direct financial loss due to organ condemnation. Using systematic random sampling 768 cattle was selected. Out of the total 768 cattle examined by ante mortem inspection only 95(12.4%) encountered abnormalities. The major abnormal conditions encountered during ante mortem examination are nasal discharge 63(8.2%), ectoparasites 12(1.6%), emaciation 12(1.6%), lameness 6(0.8%) and local swelling 2(0.3%). Major diseases and/or pathological conditions that caused a total condemnation were fasciolosis (16.8%), calcification (11.5%), discoloration (7%), jaundice (3%), cirrhosis (1.7%) for liver ; abscessation (4.8%), congestion (9.5%), emphysema (4.8%), Hydatid cyst (2.6%), pneumonia (2.2%), for lung; atrophy (3.8%), nephritis (4.8%), renal calculi (2.1%), abscessation (0.8%), for kidney; pericarditis (2.3%), cysticercus bovis (2%), hydatid cyst (1.8%), for heart. During the study period 23,633.00 Ethiopian birr was estimated as a direct financial loss in the abattoir due to condemnation of edible organs. The current result suggests that a thorough investigation that leads to disease control strategy is required to reduce the financial loss and public health consequences. Keywords: antemortem inspection, Bahir Dar, cattle, municipal abattoir, organ condemnation, postmortem examination