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Purpose The purpose of this study was to assess the prevalence of stunting and identify factors associated with it among adolescent girls in Ethiopia. Design and methods From 15,683 women participants of the 2016 Ethiopian Demographic and Health Survey (EDHS), a sub-sample of 3,498 adolescents aged 15−19 years were selected; from which 2,733 adolescents who had a complete response to all variables of interest were retained for analysis. Variables were selected using conceptual framework. We used height-for-age Z-score index (HAZ) growth standards less than ‐2 to identify stunting. We adjusted for weights and sampling design. Bivariable and multivariable regression analysis was carried out. Results The prevalence of stunting was 410(15%); comprising of 353 (12.9%) moderate and 57(2.2%) severe stunting cases. The odds of being stunted among respondents living in Tigray (AOR = 3.38, 95%CI: 1.47, 7.79), Amhara (AOR = 2.66, 95%CI: 1.18, 6.012) and Addis Ababa (AOR = 4.24, 95%CI: 1.84, 9.79) were higher compared to respondents living in Dire-Dawa. Adolescent girls living in rural areas (AOR = 2.29, 95%CI: 1.10, 4.75) had higher odds of stunting compared to those living in urban areas. Adolescent girls from the lowest wealth quintile (AOR = 2.38, 95%CI: 1.56, 9.67) had higher odds of stunting compared to the highest wealth quintile. Respondents who have one child (AOR = 3.33, 95%CI: 5.78, 15.31), and two children (AOR = 4.01, 95% CI: 1.39, 7.73) had higher odds of being stunted compared to those who have no children. The odds of stunting among adolescent girls having no access to safe water supply (AOR = 3.17, 95% CI: 1.21–8.37) and having no access to hygienic toilet (AOR = 1.44, 95% CI: 1.17, 1.95) were higher compared to those having access to safe water supply and hygienic toilets respectively. Conclusions The current study revealed that stunting is an important public health problem among adolescent girls in Ethiopia. Practice implications Health care workers should screen nutritional status of adolescent girls and assess the risk factors of stunting giving emphasis to adolescent girls living in rural areas, who are within the lowest wealth quintile, who have children, and those who have no access to safe water supply and have no access to hygienic toilets.