The consequences of being overweight in non-pregnant individuals have been studied and chronic diseases are found to be associated with higher weight gain. However, few studies target the effect of gestational weight gain on adverse pregnancy outcomes. Thus, this study aims to fill the knowledge gap due to the scarcity of studies and inconsistencies of results and gain more insight into the effects of gestational weight gain on pregnancy outcomes. A prospective cohort study was conducted among pregnant women who started antenatal care follow-up before the 16 weeks of gestation in the selected health facilities of the Gurage zone. The follow-up continued until the first 7 days after delivery to record all the pregnancy outcomes. Adverse pregnancy outcomes include any of the following conditions: gestational hypertension, pre-eclampsia, eclampsia, gestational diabetes mellitus, antepartum hemorrhage, post-partum hemorrhage, preterm delivery, low birth weight, low Apgar score, intra-uterine death, intrapartum death, and early neonatal death. Binary logistic regression was used to assess the relationship between adverse pregnancy outcomes and other independent variables. From the 424 pregnant women included in the study, adverse outcome was documented among 31.4%, [95% CI 26.9, 35.8]. Maternal age, educational status of the mother, body mass index, and gestational weight gain were significantly associated with adverse pregnancy outcomes. Adverse pregnancy outcomes were higher among mothers with young age, no formal education, higher body mass index, and larger gestational weight gain.