Abstract Aim To determine the normative value of stretched penile length (SPL) for Ethiopian newborns and to set a cut‐off point for micropenis. Methods A total of 221 term newborns were included in the study. Stretched penile length was measured in the first 72 h of postnatal age in neonates with a gestational age of 37–42 completed weeks. SPL < −2 SD was taken as micropenis in this study. Results The minimum and maximum penile length were 2.5 cm and 5 cm, respectively, with a mean ± SD of 3.28 ± 0.42. SPL at −2 SD and +2 SD were 2.43 and 4.12 cm respectively. A significant correlation was observed between penile length and body length ( p = 0.005). Neonates born via instrumental delivery had larger SPL compared to those who were delivered by caesarean section ( p = 0.01) or by vaginal delivery ( p = 0.006). Conclusion The mean stretched penile length in our study mirrors findings from other African studies. SPL < 2.43 cm can be considered as micropenis in our setting. Therefore, routine genital examination and interpretation at birth is crucial to identify micropenis which might herald a serious underlying condition that needs further investigation.