Background: Rational drug use is a tool through which safe, effective and economic medication is provided. Rational prescribing ensures adherence to treatment and protects drug consumers from unnecessary adverse drug reactions. Rational dispensing on the other hand, promotes the safe, effective and economic use of drugs.Objectives: The aim of this study was to assess drug use practices and completeness of information on prescriptions in Gondar University Hospital.Methodology: A combination of retrospective and cross sectional study was conducted in outpatient pharmacy in the facility. Of the total of 30,000, some 1145 prescriptions containing drugs prescribed during the month of May 1, 2010 to April 30, 2011 were reviewed for retrospective and 31 patients coming with their prescriptions to outpatient pharmacy were interviewed in the middle of the week on the day of January 25, 2012.Results: The mean number of drugs per prescriptions was 1.76, percentage of prescriptions containing < 2 drugs per prescription was 80.87%. The generic name of the medication was used in 99.16 % of the prescriptions. Antibiotics were prescribed in 29.14 % of prescriptions and injections were prescribed in 28.50% of prescriptions. The drugs prescribed in 98.89% of prescriptions were part of the hospital essential drug list indicating the acceptance of this list by health care professionals. Patients age, sex and card number were written 86.64%, 67.93% and 73.54% respectively. Address of the patient and diagnosis were omitted 97.29% and 99.99% respectively. The correct name and strength of the drug were clearly stated in 80% of the prescriptions whereas dose, frequency and durations were clearly indicated in 81.38%, 76.07% and 82.01% of the prescriptions respectively. 33.42%, 96.69%, 72.56% and 16.09% of the prescriptions contain the name, signature, date and qualification of the prescribers. 80% of patients interviewed had adequate knowledge of how to take the medication prescribed. 61.29%, 29.03% and 19.35% of patients knew the precaution, strength and name of the drugs. From all drugs received by the patients only 8.47% (only the drugs in the tablet bag) were adequately labeled which was low from the literature.Conclusion: From the results of the study, it can be concluded that not all prescriptions were complete as few of them lack the necessary information. So there is a need for managerial and educational intervention to improve prescribing and dispensing practices.