BackgroundFood insecurity is the underlying cause of malnutrition. In addition, it is a condition where people lack consistent access to enough food for every person in a household to live an active and healthy life.Recently, urban food insecurity has been on the top agenda in Ethiopia, as households prone to food insecurity are rising because of various factors. Hence, we aimed to assess the prevalence of food insecurity and associated factors among households in Waliso town, Oromia, Ethiopia.MethodsA community-based cross-sectional study design was used from December 17, 2021, to January 16, 2022, among 397 randomly selected households in Waliso town. Study participants were selected using a simple random sampling technique. Data collection was performed using a structured questionnaire, and data were entered using Epi Info 7 and exported to SPSS version 20 software for analysis. To identify factors associated with household food insecurity, multivariable binary logistic regression analyses were done. An adjusted odds ratio along with a 95% confidence interval were estimated to measure the strength of the association. In this study, the level of statistical significance was declared at p < 0.05.ResultsThe prevalence of household food insecurity was 63.4%, 95% CI (58.60%, 68.20%). Factors associated with household food insecurity were family sizes 6 + [AOR = 3.06, 95% CI: (1.35, 6.94)], dependents 1–2 [AOR = 2.62, 95% CI: (1.35, 5.10)], dependents 3 + [AOR = 3.07, 95% CI: (1.38, 7.40)], unemployed [AOR = 6.86, 95% CI: (2.76, 17.04)], self-employed [AOR = 3.27, 95% CI: (1.50, 7.14)], wage laborers [AOR = 13.01, 95% CI: (4.93, 34.38)], low wealth index [AOR = 4.08, 95% CI: (2.18, 7.64)], and a medium wealth index [AOR = 2.08, 95% CI: (1.18, 3.69)].ConclusionNearly two in three households were food insecure in Waliso Town. Large family sizes, a high dependency ratio, unemployment, low wage employment, and a low wealth index were significantly associated with food insecurity. Hence, the implementation of actions to improve household income and livelihoods, minimize dependency rates, by strengthen the use of family planning and encourage urban agriculture is vital to alleviate household food insecurity problems in the town.