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The present study investigates the washback effects of handouts on the teaching and learning process in the higher education institutions of Ethiopia, particularly in Adama University. A descriptive survey and analytical research methods were employed in the present study. The subjects of the study included instructors and some selected students of the university. A questionnaire, an interview, a document and content analysis were employed to collect data. The data were analysed using quantitative and qualitative approaches. The data collected through close-ended items of the questionnaire were analysed quantitatively using a chi-square. Whereas the data collected via some interview guides and some items of the questionnaire were analysed using percentage. Besides, the qualitative data gathered via open-ended items of the questionnaire, some items of the interview, content and document analysis were analysed qualitatively. The research results revealed that the way handouts are being prepared and used in higher education institutions of Ethiopia does not encourage active and independent learning. Some recommendations which are deemed crucial for alleviating the problem are suggested.