Background: This study analyzed the factors affecting the use of improved cook stoves (ICS) in informal settlements of Addis Ababa based on the data generated from 450 households drawn fromWoreda(Woredais a local term used to describe the lowest administrative unit of Addis Ababa City Administration, Ethiopia.) 12 ofYeka subcity.It examined the interactive effect of households’ socio-economic backgrounds and energy sources on the adoption of ICS. The data were analyzed using descriptive methods and the multinomial logit model.Results: Demographic and economic factors such as sex of the household head,[Household head is the one who has an income and decision-making power in family affairs (a husband for married people)], family size and family income have no relationships with households’ ICS use while education level, number of years lived in the area, type of home owned, and stove-operating costs have a significant influence on the choice of an ICS. Households that live in a good home (made from wood and cement) used moreMirt(Mirtis an improved firewood stove mainly used to bakeInjeraand bread.) andLakech[Lakechalso calledTikikilis an improved charcoal stove used to cook different kinds of dishes (non-Injera)] stoves than the traditional three-stone stoves. On the other hand, household heads with higher levels of education and who have lived more than 7 years in the area in a better home owned more ICS than the traditional three-stone stoves.Conclusions: The availability, affordability, durability and simplicity to operate stoves, and subsidies affect the choice of an ICS. Energy sources that are commonly used by households in informal settlements also have a strong influence on the choice of energy-efficient stoves. Compared to ICS, heavy use of traditional three-stone stoves by households that already have access to electricity, directs government policies to focus on providing reliable electric service and subsidize those using ICS.