The study examines the major  factors of  school dropout in Egypt and access the impact of child, household/ family variables on the likelihood of children aged (6-17 years) who have started school but dropped out before completing basic education (preparatory stage) specific focus on urban-rural residence using Egypt Household Education Survey (EHES), 2005-2006. To assess the impact of the child's personality and household/family on school dropout, this study applies four logistic regression models (due to the binary nature of the dependent variable school dropout). The findings of the study include that parent's educations, household wealth index, age of child are the most significant factors of children's dropout at the national level as well as in both urban and rural areas. The following recommendations were made. The state must adopt a national project to prevent school dropouts to improve Egypt's education system. Effort are needed to put an effective policy and programs of adult education, that help parents to get rid of illiteracy, by government and the NGO's at the national level especially in rural areas. Encourage public participation in education funding to help children and their families by ease the cost of education especially in poor rural areas