This study investigated the practice of teaching vocabulary through communicative approach among Grade 9 English language teachers of nine secondary schools in Jimma Town and its surroundings. It also aimed at investigating teachers’ perception of CLT principles, instructional techniques and classroom activities. The major obstacles that affected the implementation of CLT during vocabulary instruction were also studied. To this effect, 617(10%) sample students and 51 English language teachers were chosen to fill out questionnaire. Two teachers from two high schools were also observed while teaching. Frequencies and percentages were used in analyzing quantitative data, while qualitative method was used to analyze qualitatively collected data. The findings of the study revealed that the majority of the teachers positively perceive the worth of most of the CLT principles to teach vocabulary communicatively. However, in relation to the actual vocabulary instruction, they appeared to spend much of their time in presenting the meanings and forms of words in isolation. It was also found out that teachers overused the lecture method in teaching vocabulary instead of teaching new words communicatively. They also unduly emphasized the dictionary definitions of words. Based on the findings, it is recommended that English language teachers teach vocabulary communicatively in adherence to CLT principles and through appropriate techniques that incorporate meaningful activities.