Guidance and counseling programs are effective in assisting young students in various aspects like academic achievement, study habits and choosing appropriate careers. A study was conducted in a public university in Ethiopia among 605 regular undergraduate students. Its objective was to investigate the students' awareness and use of Psychological Counseling Service at Higher Education Institutions. The study results show that demographic variables were strongly accounted for the variances in awareness of psychological counseling and use of the service. Majority of the male students (67.8%) had not heard about the presence of psychological counseling service while 24.3% of female students did not know about such a service. More than 60% of the study participants gave top priority for psychological counseling service in higher education institutions. Students' year of study and place of residence were significantly associated with the students rating of crisis intervention and emergency services, ?[superscript 2] (9)=23.40, p<0.01. The importance given to psychological counseling services also varied based on the place of origin and academic year of the students. Students believed psychological counseling service contributed to their academic success. Implications are discussed.