A cross-sectional study was conducted to determine the prevalence and assess the level of awareness of dairy farm owners to avoid antimicrobial residues in bulk milk of cattle at Adama town dairy farms. A total of 260 bulk milk samples were randomly collected in the respective study dairy farms. Questionnaire survey was conducted in all the study 26 dairy farm owners. The questionnaire was designed to obtain information on dairy farmersâ€™ knowledge and awareness that may lead to increased milk-borne risk of drug residue. Each milk sample was qualitatively screened for antimicrobial residues (regardless of its type) using the microbial inhibition plat test. A sample was positive if the zone of inhibition was 1cm and above. Out of 260 milk samples analyzed for antimicrobial residue 17(6.5%) were positive and the mean zone of inhibition level was 1.5cm. More than 85.5% of the respondents were not aware of the major managemental activities vital to avoid antimicrobial residues. The presence of drug residues in milk above tolerance level and lack of awareness and/or practical activity on avoidance of antimicrobial residual in the milk attained for human consumption is a public health hazard. Therefore all drugs given to dairy animals must be used for specific disease indications according to label recommendations and withdrawal periods. Giving awareness, teaching and training programs for farm owners and workers can reduce the public health risk of drug residue. Continuous surveillance should also be practiced by authorized governmental body.