Background: Community-acquired pneumonia (CAP) is associated with high mortality. Drug resistance is common in countries where the alternative treatments are limited and available drugs are misused. In resource limited countries; it is wise to determine antimicrobial susceptibility pattern of common bacterial pathogens of Community acquired pneumonia. Methods: A cross sectional study conducted at Arba Minch Hospital, Southern Ethiopia from February to December 2013. Sputum specimens were collected; microbiological investigations and antimicrobial susceptibility testing were performed using standard procedures. Data was processed and analyzed with SPSS version16.0. Results: Out of 170 cases, only 73 (42.9%) were culture positive. Majority of tested bacterial isolates (>86%) were sensitive to Ceftriaxone and Ciprofloxacin. Most Streptococcus pneumoniae isolates (60%) were resistant to Oxacillin. Most of Staphylococcus aureus and gram negative bacterial isolates were resistance to Tetracycline (100%), Penicillin (83.3%), Ampicillin (50-100%), Doxycycline (50-100%), and Trimethoprim-sulfamethoxazole (83.3-100%). Multidrug resistance (MDR) was observed to most (60.3%) bacterial isolates. Conclusion: Antimicrobial resistance including Multidrug resistance was observed to a number of commonly used antibiotics, such as trimethoprim- sulfamethoxazole, penicillin groups and doxycycline. Hence, periodic monitoring of drug resistant pattern is essential for better management of community acquired pneumonia.