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Abstract Introduction Contraceptive discontinuation has become a widespread issue on a global basis. Implants, of which Implanon is the most popular, are only the second most widely used form of modern contraceptive in Ethiopia. However, Implanon was discontinued at a rate as high as 23.4% in Ethiopia within the first year of use. Therefore, the purpose of this study was to identify the incidence rate and predictors of unplanned discontinuation of Implanon in the first year of application at public hospitals in the North Shoa zone, Central Ethiopia. Methods A retrospective follow-up study was conducted at public hospitals in the North Shoa zone among women who use Implanon. A total of 429 women who wanted their Implanon removed after insertion were selected as study participants during the data collection period. Data were gathered from the family planning initiation and removal registration books as well as by contacting users directly. A log-rank test was used to assess the significance of observed differences between categorical variable strata. The acceleration failure time model with log-normal distribution was used to fit the survival data. Results The unplanned discontinuation rate Implanon in the first year of insertion was 19.1% with an estimated mean survival time of 10.9 months (95% CI: 10.65, 11.14). Women with an interval period of insertion (AAF = 1.53; 95% CI: 1.06, 2.21), women who chose implanon by themselves (AFF = 1.32; 95% CI: 1.02, 1.71), women who were satisfied with the service (AFF = 1.40; 95% CI: 1.06, 1.83), and women who were given instructions on what to do if they experienced side effects (AFF = 1.85; 95% CI: 1.40, 2.44), had a lower likelihood of discontinuing their implanon in the first year of insertion. Conclusion The risk of unplanned Implanon discontinuation was found to be high in the study area. Health care providers should pay close attention to clients' needs when delivering family planning services, and the client should ultimately decide whether to use the service. Family planning departments must also engage in early-side effects treatment and reassure clients to lessen discontinuation.