ABSTRACT Introduction Around 40% of estimated people with HIV infection remain undiagnosed globally. In Ethiopia, only 72% of people with HIV know their status. This study aims to assess the proportion and the factors associated with partner and family-based index case HIV testing in Woliso Town. Methods A facility-based cross-sectional study was conducted among 346 people currently on ART. Data were entered into Epi Info™ 7.2.3.1 and analyzed using SPSS 21. Significance of odds ratios was determined with 95% CI and p < 0.05. Results Among 345 study participants, 333 (96.5%) with 95% CI (94.5–98.3) index cases have families tested for HIV. 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 disclose. Those who stayed <12 months on ARTwere 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 Higher proportions of index cases have tested families. Partner and family-based index case HIV testing has association with HIV status disclosure and duration the index cases stayed on ART. The platform of partner and family-based index case HIV testing should be sustained through strengthening disclosure counseling.